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Volume 5, Number 1, January – March’ 2016

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IMPACT OF ADVERTISEMENT ON BRAND PREFERENCE OF BEER PRODUCTS

WITH REFERENCE TO HAWASSA CITY

Dr. Brehanu Borji1 Shimeles Nega Amele2

ABSTRACT

Measuring the impact of advertisement on consumers’ brand preference is very essential for every marketer. If advertisement

does not create any positive change in consumers’ brand preference, all resources such as money, time, and effort spent on

advertisement will be lost in vain. Most marketers use advertisement as a tool to attract substantially new customers and to

retain the existing ones. The purpose of this study is to examine the impact of advertisement on consumers brand preference in

the beer market in Hawassa city. Every brand in this market uses advertisement as a major weapon to overcome the fierce

competition. In order to study the impact of advertisement in consumer brand preference, three main variables were

considered with appropriate dimensions. They are advertising media, source of advertisement, and characteristics of

advertising messages as independent variables, and brand preference as dependent variable. The structured questionnaires

were distributed to 384 respondents, which are selected using stratified sampling technique. However, only 346 duly filled in

valid questionnaires were collected. The collected data were analyzed using descriptive statistics (frequency, percentage) and

inferential statistics like correlation and multiple regressions. The finding revealed that there are positive and significant

relationships between advertising media, source of advertisement, characteristics of advertising messages and brand

preference of beer. Even though it has high influence on overall view, among advertising media, TV is the most influential

media, where as internet advertisement has low influence in brand preference of beer in Hawassa City context. Moreover, the

result of qualitative analysis indicates that the need for celebrity-product and celebrity- target audience match. This

congruence might influence the celebrity endorsement effectiveness through the process of consumer attributions of the

celebrity's motive for associating him /herself with the particular product. The personalities of celebrities are also very strong

and they can rapidly change perceptions of a brand. Eventually, the study recommended appropriate actions for companies in

refining their advertising strategies as a means of overcoming the intense competition that exist in the market. So doing, they

can increase their sales volume and market share.

KEYWORDS

Advertisement, Brand Preference, Advertising, Advertising Media, Advertising Message etc.

INTRODUCTION

Advertising plays a crucial role for any business to boost up its performance because it is a powerful promotional tool to attract

consumers towards the product. In today’s competitive environment, the use of advertising becomes mandatory for manufacturers,

suppliers, marketers and others who are directly or indirectly related to business. Advertising is a dominant and leading weapon in

all marketing tools due to its positive impact on consumers’ buying behavior. It is an attractive way to communicate and convey

the message to the audience. Advertising today is no longer a mere tool of marketing. It is a business, a creative process, a social

phenomenon, and a fundamental ingredient of a free enterprise system.

The use of advertising to promote the product to its users is not new phenomena. Different historical records inform us that it was

in use since the olden days. According to Kotler and Armstrong (2008), advertising could be traced back to the very beginning of

recorded history. Archaeologists working in the countries around the Mediterranean Sea dug up signs announcing various events

and offers. The Romans painted walls to announce gladiator fights and the Phoenicians painted pictures, on large rocks along

parade routes, promoting their wars. During the Golden Age in Greece, town criers announced the sale of cattle, crafted items and

even cosmetics. However, now-a-days the way advertising is used more complicated because of long-term changes such as the

increase of larger and more diverse range of media as well as the arrival of new and advanced technologies.

According to Arens et.al. (1996), “Advertising is the non personal communication of information, usually paid for and usually

persuasive in nature about products (goods and services) or ideas by identified sponsors through various media.” This definition

clearly emphasizes the fact that all kinds of advertising – be it for products, services or ideas is usually aimed at a particular

segment of the population that is called the target audience, which could be either the consumers or business houses. Advertising

presents the company and its products to the market helps in the organization to achieve the marketing goal and hence there is a

need to understand the relationship between marketing and the way consumers behave. This research mainly investigates the

1Associate Professor (Marketing Management), School of Management and Accounting, College of Business and Economics,

Hawassa University, Ethiopia, [email protected] Hawassa, Ethiopia, [email protected]

mailto:[email protected]






impact of advertising on brand preference of consumers’. Different factors such as advertising media, source of advertisement,

and characteristics of advertising messages and others which influence brand preference of consumers’ are considered in this

study to examine their impact on beer brand preference.

LITERATURE REVIEW

Conceptual Literature

According to Tolani (2012), the first advertisement may have been a sign painted on a wall of a building. The early outdoor-

advertising competitors were town criers employed by merchants to praise their goods. Gutenberg’s invention of the moveable-

type printing press in 1450 resulted in the mass production of posters and circulars. According to Pope (2013) over a century ago,

Harper’s Weekly commented that advertisements were “a true mirror of life, a sort of fossil history from which the future

chronicler, if all other historical monuments were to be lost, might fully and graphically rewrite the history of our time.” Few if

any historians today would claim that they could compose a complete history of an era from its advertisements, but in recent

year’s scholars have creatively probed advertisements for clues about the society and the business environment that produced

them. The presences of many excellent online collections of advertisements provide learners as well as established scholars the

opportunity to examine these sources in new ways. The experience can be tantalizing and frustrating, since advertisements do not

readily proclaim their intent or display the social and cultural context of their creation. Yet studying advertisements as historical

sources can also be fascinating and revealing.

Belch and Belch (2003) stated that in the modern world nearly everyone is influenced to some degree by advertising and other

forms of promotion. Organizations in both the private and public sectors have learned that the ability to communicate effectively

and efficiently with their target audiences is critical to their success. Advertising and other types of promotional messages are used

to sell products and services as well as to promote causes, market political candidates, and deal with societal problems such as

alcohol and drug abuse.

Kotler, Keller, and Koshy (2009) stated that, advertising is the best known and most widely used form of promotion because of its

persuasiveness; it can create brand images and instill preferences among consumers. Advertising can result in creating strong

positioning of brands thereby creating loyal consumers. Morden (1991) also corroborates the views given by Kotler et. al., (2009)

stating that advertising is used to establish a basic awareness of the product or service in the minds of the potential customers and

to build up knowledge about the brand.

According to Agrawal (2012), advertising is a relatively low-cost method of conveying selling messages to numerous prospective

customers; it can secure leads for salesmen and middlemen by convincing readers to request more information and by identifying

outlets handling the product. It also can force middlemen to stock the product by building consumer interest. Advertising is to

stimulate market demand. While sometimes advertising alone may succeed in achieving buyer acceptance, preference, or even

demand for the product, it is seldom relied upon. Advertising is efficiently used with at least one of other sales methods, such as

personal selling or point-of-purchase display, that directly move customers to buying action. Advertising builds a corporate image

for a company. It increases sales of the product or service thereby creating and maintaining a brand identity or brand image (David

et al., 2009).

According to Macrae (1994) ``Brand benchmarking applied to global branding processes'' consumer buyers usually approach the

marketplace with a well-established set of tastes and preferences. The vast majority of times, even their unplanned and

unanticipated purchases are strongly influenced by pre-existing tastes and preferences. In a very real sense, marketing and

promotion constitute a battle for the minds of consumers. While direct competitors strive to outdo one another to winning greater

brand preference and loyalty, there is also rivalry between producers and marketers in very different industries, promoting very

different kinds of goods and services (Knox, 1997). Almost every one grows up in the world which is flooded with the mass

media e.g. television, advertising, films, videos, billboards, magazines, movies, music, newspapers, and internet (Latif and

Abideen, 2011).

According to Thompson (2005), source of advertising, are groups that people refer to when evaluating their own qualities,

circumstances, attitudes, values and behaviors? Source of advertising act as a frame of reference to which people always refer to

evaluate their achievements, their role performance, aspirations and ambitions. A source of advertisement can be from either a

membership group or non-membership group; it can also

Empirical Literature

Michael (2012) conducted his study with the title of “Impact of Media on Consumers’ Brand Preference” undertaken on

Carbonated Beverage Market with Reference to Coca-Cola. The collected data from the survey shows that brand preference exists

in the carbonated beverage Market and the media efforts affect consumer preferences and their brand choice. Out of eight different





carbonated beverage brands, which featured in the study, Coca-Cola topped the brand Preference table in carbonated beverage

industry. Hence, it is clear that Coca-Cola is the favorite carbonated beverage among consumers. Based on this study,

advertisement and taste was the major factors responsible for the success of Coca Cola. The implication is that other variables do

not influence much when brand is supported by heavy advertisements and appeals to consumers’ taste buds, which persuades

them to continue buying. Majority of the respondents claimed to have known Coca-Cola over 15 years and Coca-Cola having

been in existence for more than 20 years remain the delight of many consumers of carbonated beverage. It is evident that the

brand has enjoyed a relatively prolonged life cycle. The study also showed that advertisement is the major source of awareness of

Coca-Cola and Television is the most effective medium as cited by most of the respondents. Vivekananthan (2010) studied

“Influence of advertisement in consumer brand preference with reference to soft drinks” .The research was conducted by taking

three variables, namely Information, communication, and comprehension. Findings of this research revealed that the variable

information has high influence in advertisement on consumers’ brand preference. This has the mean value of 3.62 and standard

deviation of 0.39. Here three dimensions measure the variable information: attractiveness, attention, and awareness. These three

dimensions account for about 56 percent of respondents that are highly influenced by information in advertisement.

The next variable is communication; the influence of communication in advertisement indicates the high influence in consumers

brand preference mean value 3.73 with standard deviation of 0.52. From 200 respondents 66 percent expressed their high

influence, 28 percent expressed their moderate influence and 6 percent expressed their low influence in brand preference.

Message, source and media considered as main dimensions of communication to measure the influence of advertisement in

consumer brand preference of soft drinks. The final variable is comprehension. The comprehension in advertisement indicates the

high influence in the brand preference of consumer. Mean value 3.67, standard deviation 0.52. From 200 respondents 63 percent

expressed their high influence, 33 percent expressed the moderate influence and 4 percent expressed low influence in consumer

brand preference. It is measured through the three dimensions: recall, link, and attitude. Recall had 71% of high influence in

comprehension with the mean value of 3.83. Link indicated 49% modern influence and attitude showed 73% of high influence.

Although the three variables showed high influence in overall view, the researcher wanted to consider indictors, which have low

and moderate influence in their future developments to maintain its position in the market in the long run.

Gezachew (2012) assessed the influence of advertisement on consumers brand preference with reference to electronics products in

Hawassa City. In the study, he used four variables, namely, advertising media, features of advertisement, contents of advertising

messages and reference group. The findings of the study revealed that from advertising media perspective television advertising is

the most preferred by consumers to have awareness about the product and chose alternative brand. 72.5% of respondents

expressed that television advertising is most preferable. Mother Tang language is also the most preferable language by audiences.

To convey advertising message experts, celebrities, and common person were preferred by consumers to get reliable information

of the brand. Statistically celebrities account for the mean value of 4.58 and standard deviation of 0.804.and experts have the mean

value of 4.37 and standard deviation of 0.876. Common person, family and friends accounted the mean value of 3.73 and 4.29

respectively and the standard deviation of 1.486 and 1.081 respectively.

Chandrima (2009) conducted the research on “The impact of electronic and print media on consumers brand preference.” The

results of this study found out that people notice advertisements and the awareness level of the brand is increased showing

intention of purchasing and being loyal to the brand. This is only because of advertisements. Based on this study he concluded

television advertisements have more access to the people. Customers prefer television in comparison to other media since they get

both the audio and visual effects .This also proved that customers rely on advertisements shown in media.

Tendon (2011) assessed the “Impact of advertising on the brand preference of tea.” variables of the study are advertising, sales

promotion, they are source of awareness and income, age, gender, and education are also independent variables. The study

revealed with the perspective of source of awareness of tea brand, advertising accounts for 72.4%of the respondents while 2.2%

respondents feel that sales promotion schemes create awareness of the brands. In the side of parameters for the parameters of tea

brand, 63.8% of respondents considered quality of the product (tea) as the most important parameter and only 12.9% of

respondents considered advertising as the most important reason for the preference of tea followed by availability 4.4% and

packaging accounts for 2.2%.from this finding he interpreted that consumers nowadays are quality conscious and want to spend

their money on quality matters Again the study revealed that age, income, and education have great impact on the brand

preference of tea whereas gender has no impact on the brand preference of consumers, its F value is 0.246 and P value of 0.62.

The result of ANOVA table shows that Age has F value of 11.029 and p value is <0.000. In addition, Income has F value 3.83 and

P value of 0.010. Finally, education has the F value of 4.038 and P value of 0.008, which was significant.

Singh et al.(2012) “Impact of advertisement on the brand preference of aerated drinks.” The study is conducted by taking two

major variables such as celebrity endorsement and types of advertising media. The finding revealed that celebrity endorsement has

positive impact on attention and exposure of consumers and from different types of media, television advertisement became the

most effective and popular media and liked by consumers followed by internet and outdoor media. MacKenzie and Lutz (2000)

identify advertising credibility as consumers’ general perception towards the truthfulness, reliability, trustworthiness and

believability of an advertisement. The study of Goldsmith, Lafferty and Newell (2000) also indicated that credibility of an





advertisement is affected by various factors, particularly by the company’s credibility and the person who brings a message.

Studies such as Ramaprasad and Thurwanger (1998); Haghirian and Madlberger (2005) lend support that there is a strong and

positive relationship between informative and consumers’ attitude towards advertising.

STATEMENT OF THE PROBLEM

According to Vivekananthan (2010), marketers’ main objectives are getting new consumers and retaining the existing ones to

increase their market share and sales volume. The cost of getting new customers is five times greater than the cost of retaining the

current customer (Reicheld & Sasser, 1990). To do so, marketers are spending huge amount of money, energy, and time for

advertising their products, services and ideas. As it is stated in Wikipedia free encyclopedia, in 2010 spending on advertising was

estimated at more than $300 billion in the United States and $500 billion worldwide. Form this TV ads covers between thousands

and millions of dollars for a 30-second advertisement. For instance, in USA about $50,000-$750,000 costs for set up of

advertising, and for media it costs about $35,000 to $2 million per 30 second spot. It is so expensive than other types of ad media.

Companies allocate a considerable part of their resources to advertising activities in the hope that advertising dollars are earning

the best return on investment.

Marketers do advertisement in order to inform the availability of the product, to persuade that their product is of high quality, fair

price, durable etc. and to remind about existing product. Advertising plays an important role in today's competitive world by

which organizations communicate with their customers. If advertisement does not create any positive change in consumers’ brand

preference, all the resources such as money, time and efforts spent on advertisement will go in vain.

In Hawassa, there are a number of beer products in the market such as BGI products (St. George Beer, Amber Beer, and Castle

Beer), Harar Beer, Bedele Beer, Dashen Beer, Meta Beer and other foreign and local brands. The producers of these brands have

been striving to increase their market share through varying marketing strategies. They do use sales promotion, advertisement,

personal selling, and also provision of point -of -sale materials like, T-shirts, cups, posters, shelf strips etc., to their target

consumers and tables, chairs, and umbrellas in which their trade mark is labeled on it to sellers of their products in order to stir,

attract, and retain the existing consumers towards their product. This research study was mainly focused on assessing the impact

of advertising on brand preference of consumers and different factors, which do have influence in brand preference of consumers

that directly or indirectly contributes to the increase of market share and sales volume in the industry. In other words, the study

made hard effort to see whether the advertising has brought about any significant change on sales volume or market share of beer

beverages.

OBJECTIVES OF STUDY

General Objective

The general objective of the study is to explore the impact of advertisement on consumers’ beer brand preference.

Specific Objectives

To examine the relationships between advertising and consumers’ brand preference of beer.

To figure out the consumer perception regarding the most effective media for Advertisements.

To examine the impact of celebrities on consumers brand preference.

To investigate the influence of language of advertising on consumers brand preference

To explore the relative impact of each independent variable (advertising media, source of advertising, and

characteristics of advertising message) that significantly influences consumers’ brand preference of beer.

To assess the impact of income level of consumers on beer brand preference.

To examine the age difference of consumers in brand preference of beer through advertising.

HYPOTHESIS OF STUDY

Ho1: There is no positive relationship between advertisement and consumers’ brand preference.

Ho2: Components of Advertisement have no positive impact on consumers’ brand preference.

Ho3: Each advertising media has no positive impact on consumers’ brand preference.

Ho4: Each reference groups has no positive impact on consumers’ brand preference.

Ho5: Each characteristic of advertising messages has no positive impact on consumers brand preference.

Ho6: Celebrities have no positive impact on consumers brand preference.

Ho7: The impact of advertising on brand preference of beer is not dependent on income level.

Ho8: The impact of advertising on brand preference of beer is not varied by age.





SIGNIFICANCE OF STUDY

There are number of beer manufacturing and marketing companies in the City of Hawassa. All of them are employing

advertising campaign in order to increase their sales volume and market share by attracting more users of their brands.

This study, therefore, is conducted to see whether advertising strategy has brought and helped them to increase the

desired sales volume and market share.

The finding of the study benefits the marketers, manufacturers and suppliers by positively influencing consumers to

make purchase decision. In addition, it helps in developing the integrated marketing communications program, through

setting new advertising program by developing message and media strategy (determining which communication

channels will be used to deliver the advertising message to the target audience). Besides, the research will help them to

understand the types of media, which are more relevant for advertisement, the language that best fits the advertising

campaign.

Moreover, it helps them in realizing the importance of advertising endorsers like: celebrities and experts.

In addition, this research benefits companies to target their audiences by income level and age. The result of this

research helps companies in creating awareness about their products and to getting more market share and increasing

sales volume. This can make them to earn more revenue and profit. In other words, it helps them in evaluating the return

on investment (ROI) of advertising campaign.

This research benefits consumers in providing information about the brand’s availability, product modality, quality, etc.

This research can be used as a source of reference and benchmark for new researchers who have intention to make

further study in this area.

Finally, it will help to construct suitable recommendations about advertising in attracting consumers to the brand choice.

SCOPE OF STUDY

The study was conducted on assessing the impacts of advertising on consumers’ beer brand preference in Southern Nations,

Nationalities and Peoples Region (SNNPR), Hawassa city. The study was primarily focused on why consumers prefer one brand

to the other and which factors were more influential through advertisement of beer brands. It was also focused on the factors of

advertisement such as types of media, source of advertising, and characteristics of advertising messages and languages of

advertisement. It was conducted by taking beer products as only reference to the study. The study was conducted by taking data

from September 2014 to January 2015. In this study, both quantitative and qualitative methods were used.

LIMITATIONS OF STUDY

There were several limitations regarding this research study. Primarily, it was difficult to investigate a broad topic that requires

deep investigation, associated with large number of factors within the budgeted time, and allocated fund. Secondly, the research

was confined to the viewpoints of consumers, managers and salesmen only. It did not include the viewpoints of manufacturers,

whole sellers and distributers. Thirdly, this research relied mainly on the primary data. It was also difficult to find the exact

number of beer consumers in Hawassa city due to various natures and behavior of people. The result was also limited as the target

group was restricted to people who were located in Hawassa and took beer products in the selected area. Moreover, the result

obtained in this research may not represent the whole country (Ethiopia), since it was confined only in Hawassa city urban area.

Other cities of the country also require the conduction of the same investigation in order to know the beer brand preference by the

users of beer product.

RESEARCH METHODOLOGY

The study was conducted aiming to assess the impact of advertisement on consumers’ brand preference with reference to beer

products in Hawassa city. In this research, both quantitative and qualitative data were used. However, more emphasis was given to

quantitative data. The researcher also made use of qualitative data in order to triangulate the data collected through the

quantitative method. The study employed both primary and secondary data. The primary data were collected directly from the

sample respondents such as the consumers of beer, sales personnel and managers in selected groceries, restaurants and hotels

using structured questionnaire. Interview method was also used to substantiate the data obtained through questionnaire method.

The secondary data were collected from such sources as books, journals, articles, research papers, and the internet.

Businessmen, traders, employees and other dwellers in Hawassa City, aged above 18 and consume branded beer products, and

who frequently visit hotels, restaurants and groceries in all Sub-Cities were taken as the target population of the study. To draw

the required sample size, eight sub-cities were selected by the researcher. To draw a proportional size that constitutes a sample of

the study, the researcher used stratified sampling technique, which provides equal chance of being considered to each stratum, and

then items were selected from each stratum to constitute a sample. To this effect, the study used sample size determination

formula provided by Malhotra (2011) as follows:





N = 𝟐𝟓𝟎𝟎𝒙𝟐𝟏𝟎,𝟔𝟕𝟗𝒙𝟏.𝟗𝟔𝟐

[𝟐𝟓(𝟐𝟏𝟎,𝟔𝟕𝟗−𝟏)]+[𝟐𝟓𝟎𝟎𝒙𝟏.𝟗𝟔𝟐] 𝐧 = 𝟑𝟖𝟑. 𝟓𝟎 ≈ 𝟑𝟖𝟒

n: The minimum required sample size.

N: Population size of Hawassa city urban area

Z: The value for Z is found in statistical tables which contain the area under the normal curve (z =1.96) with 95% confidence

level.

After determining the sample size, to determine the size each stratum constitutes, the following formula is used from Kothari

(2004).

Sample Size = Total Sample Size x Sub-city Population

Total Population

Table-1: Population Distribution by Sub-Cities and the Number of Sample Size Proportion

Sources: Computed by the researcher based on the population of housing report (CSA, 2007).

As a mentioned of it has been made earlier, the primary data were collected using questionnaires and interview methods. A total

of 384 sets of questionnaires were administered and distributed to the potential respondents that are believed to frequently use

beer in the selected sample area. However, only 346 duly filled in questionnaires were returned representing the rate of 90.1

percent. Structured interview was prepared and the responses were collected from sales personnel and managers of the targeted

hotels, restaurants and groceries. Each question in the questionnaire was designed properly to easily meet research objectives. The

questionnaire consisted of three parts: Part one was prepared to gather general information about the respondents’ demographic

aspects (characteristics), part two consisted of multiple choice questions related to the study variables and the third part, on the

other hand, consisted of questions about major factors related to advertising and can influence consumers brand preferences.

The items of the questionnaire were adopted from different sources of the extant literature. The items for the independent

variables such as advertising media and sources of advertising were adopted from Gezachew (2012), Adeolu et al. (2005) and

Ling et al. (2010).The items for Characteristics of advertising message were adopted from MacKenzie and Lutz (2000); Haghirian

and Madlberger (2005); Vivekananthan and Ling et al.(2010). Lastly, the items for dependent variable brand preference were

adopted from Gezachew (2012). More over the researcher added some elements of factors from theoretical literatures. Likert scale

format was applied, as the scale was suitable for self-administered survey method Hair, Bush and Ortinau (2004). A 5-point Likert

scale anchored by “strongly agree” (5) to “strongly disagree” (1) was adopted as the attitude measurement for the independent and

dependent variables. Before distributing the questionnaire to the sample respondents, the validity and reliability of it was tested by

conducting a pilot survey in order to see the strength of internal consistence. To this effect, Cronbach’s Alpha is used to test the

internal consistence between the items in the category. Accordingly, the test result of pilot questionnaire was found to be between

0.815 and 0.875 which is greater than 0.70 (See Table 12, Appendix A for Cronbach’s Alpha computations). After test is

completed, the questionnaire is accepted and distributed to the respondents. After collecting the required data, proper tools and

techniques were used for classification and analysis. The study employed both descriptive and inferential analysis. To this effect,

the software called Statistical package for the social science (SPSS) version -20 was used for the processes of analysis. As the

study involved more than two independent and dependent variables, ANOVA test is used to prove and disprove the set

hypotheses.

n = 𝟐𝟓𝟎𝟎𝒙𝑵𝒙𝒁𝟐

[𝟐𝟓(𝑵−𝟏)]+[𝟐𝟓𝟎𝟎𝒙𝒁𝟐]

S/N Sub-cities Population Percent (%) Sample Size

1 Hawella-tulla 978 0.46 2

2 Mehal Ketema 19,685 9.34 36

3 Bahile Adarash 19,964 9.47 36

4 Hayek Dar 23,367 11.09 42

5 Addis Ketema 23,965 11.38 44

6 Misrak 31,191 14.80 57

7 Meneharia 32,945 15.64 60

8 Tabor 58,584 27.81 107

Total 210,679 100 384





DATA ANALYSIS AND RESULT DISCUSION

Demographic Characteristics

As far as the sex of respondents is concerned, the male respondents constituted 256 (74%) of the total respondents and female

respondents represented 90 (26%) of the total sample respondents. This shows that men are more consumers of beer than women.

The results obtained through interview from sales personnel and managers also revealed that majority of beer consumers in the

study area were males. This implies that gender difference has influence on consumers brand preference on different brands of

beer.

As far as the age of the respondents is concerned, 167(48.3%) of respondents were categorized in the age range of 26-35, 125

(36.1%) of the respondents were in between 18-25, 37(10.7%) of respondents lied in between 36-45 years, 15 (4.3%) of the

respondents were above 55, whereas 2(0.6%) of the respondents were in the age range of 46-55 years. This implies that the

majority of beer consumers in the study area were in the age range from 18-35 years old. In other words, the young and adult

consumers were found to be frequent users than other age groups.

As far as the educational status of the respondents is concerned, 236(68.2%) of the respondents were Degree holders, 37(10.7%)

respondents completed secondary school, 31(9%) of the respondents were diploma graduates, 22(6.4%) of the respondents

completed primary school, and the remaining 20(5.8%) respondents were certificate holders. From this, it can be implied that the

majority of respondents were first-degree holders and have access to work and earn money they consume for beer. There were no

illiterate respondents in the study area consuming beer when this study was conducted.

As far as the marital status is concerned, the study revealed that 213 (61.6%) of the respondents were unmarried or single and the

rest 133(38.4%) of the respondents were married. This implies that the majority of respondents who frequently consume beer were

single. As a result, they are not shouldering responsibility of their families and they use their earnings for the consumption of beer.

As far as the monthly income is concerned, the study revealed that 157 (45.4%) of the respondents earn monthly salary between

1001 and 3000 Birr; 100 (28.9%) of the respondents earn between 3001 and 5000 Birr; 31 (9%) of the respondents earn monthly

income more than 7000 birr; 24 (6.9%) of the respondents have no income at all as they are dependent on their parents. The

respondents having monthly salary less than 1000 Birr were 23(6.6%) whereas the remaining 11 (3.2%) of the respondents earn

monthly salary between 5001-7000. As shown in the same figure, the majority of the respondents earn the monthly salary between

1001-5000 birr. This implies that the level of income, in some extent, determines the demand and consumption of beer product.

Affluent respondents are consuming beer frequently because of their income. However, the study found that some respondents

who do not have any income and dependent on their parents are also addicted to using beer brands.

As far as the working condition of the respondents is concerned, the study revealed that 194(56.1%) of the respondents were

employed while 47(13.6%) of the respondents were unemployed and 74 (21.4%) were students and the remaining 31(9%) of the

respondents were others. Majority of the respondents (56.1%) were employed and are earning income that might be used for

consumption of beer. This implies that employed consumers could afford paying more for beer than unemployed ones because the

later are dependent on the income of their parents.

Table-2: The Role of Advertisement on Purchase Decision

Response Frequency Percent

Do you rely on advertisement to make purchase decision? Yes 236 68.2

No 81 23.4

Some times 29 8.4

Total 346 100.0

Sources: Survey, 2014

According to Table-2 here above, 236 (68.2 percent) of the respondents replied that advertising has influenced them to make

purchase decisions and 81 (23.4 percent) of the respondents replied that they are only sometimes relying on advertising .This

implies that most consumers focus on advertising before making purchase decision regarding the purchase of beer brands.

According to table-3 below, 165(47.7%) of the respondents replied that they preferred mother tang language to other languages

and 70(20.2%) of the respondents replied that they would prefer both national and mother tang languages to other languages. Still

57(16.5%) of the respondents responded that they would prefer official language and the rest 54(15.6) of the respondents replied

that they would prefer international language in advertisement. From the above table it can be concluded that mother tang

language is the most popular one by consumers when advertisement is placed.





Table-3: Type of Language Customers Prefer in Advertisement

Question Responses Frequency Percent

Which language do you prefer

when you watch an advertising?

International language 54 15.6

National language 57 16.5

Mother tang language 165 47.7

Both national and mother tang 70 20.2

Total 346 100.0


Figure-1: Types of Beer Brands Preferred By Respondents


In figure 7, the study revealed that the most popular beer is St. George beer 120(34.7%) of the total followed by Meta beer

78(22.5%) which is also followed by Harar beer 51(14.7%) respectively. This implies that St. George, Meta, and Harar beer had

relatively higher brand equity and market share than others in the market. These companies are found that they are practicing

advertising strategy properly in order to increase sales volume and market share by maximizing brand equity.

Figure-2: Types of Media Preferred by Consumers


0

50

100

150

St.George

beer

Bedelebeer

Hararbeer

Metabeer

Castlebeer

Amberbeer

Dashenbeer

Others

120

3651

78

933

181

34.7

10.4 14.7 22.52.6 9.5 5.2 0.3

Frequency Percent

Television113(32.7%)

Radio73(21.1%)

News paper49(14.2%)

Magazine41(11.8%)

Internet13(3.8%)

Out door57(16.5%)





As it can be seen in figure 8, different advertising media are used as a vehicle to communicate their products to different users.

According to figure 8, most of the respondents 113(32.7%) replied that they would prefer television advertising to other kinds of

advertising media. They reasoned out that pictures support what they hear when TV advertising is employed.

Hypothesis testing

Ho1: There is no positive relationship between advertisement (advertising media, source of advertisement, and characteristics

of advertising messages) and consumers’ brand preference.

Table-4: Correlations between Independent Variables (Advertising Media, Source of Advertising, Characteristics of

Advertising Messages) and Dependent Variable (Brand Preference)

Note: ** Correlation is significant at the 0.01 level (2-tailed).


The study revealed that there was positive and strong relationship between brand preference and advertising media, because the

value of “r”=0.876 and “p” = 0.000 which means the correlation was significant at 0.05 significant level (2-tailed). The study was

supported by the findings of Jain and Sharma (2012). There was also positive and strong relationship between source of

advertising and brand preference with “r” value of 0.850 and “p” value of 0.000.Furthermore, there was strong correlation

between characteristics of advertising message and brand preference having “r” value 0.891 and “p” value 0.000.Hence it could be

concluded that all independent variables were positively and strongly correlated with brand preference (dependent variable).

Therefore, the null hypothesis is rejected and alternative hypothesis is accepted.

Ho2: Components of Advertisement (advertising media, source of advertisement, characteristics of advertising messages) have

no positive impact on consumers’ brand preference.

Table-5: Results of Regression Analysis for Components of Advertisement

Model

Unstandardized

Coefficients

Standardized

Coefficients

t

Sig. B Std. error Beta

(Constant) -.191 .092 - -2.075 .039

Advertising media .361 .037 .330 9.831 .000

Source of advertisement message .259 .030 .273 8.715 .000

Characteristics of advertisement message .450 .037 .412 12.261 .000

Note: a) Dependent Variable: Brand Preference


Table-5 shows the results of multiple regression analysis between independent variables (Advertising media, source of ad

messages and characteristics of ad messages) and dependent variable (brand preference). As it can be seen from the same table

here above, the study revealed that all independent variables have significant level below 0.05 (p<0.05). Beta values also showed

independent variables’ influence on dependent variable. This means independent variable has the strong influence on dependent

variable with beta value 0.412. It explains that 41.2% variation in Consumer brand preference is caused due to characteristics of

advertising Messages, which is significant at 0.000. Consequently, the study concluded that source of advertising message is

Brand

Preference

Advertising

Media

Source of

Advertising

Characteristics

of Advertising

Messages

Brand

Preference

Person Correlation 1

Sig. (2-Tailed)

Advertising

Media

N 346

Person Correlation .876** 1

Sig. (2-Tailed) .000

Source of

Advertising

N 346 346

Person Correlation .850** .778** 1

Sig. (2-Tailed) .000 .000

Characteristics

of Advertising

Messages

N 346 346 346

Person Correlation .891** .810** .777** 1

Sig. (2-Tailed) .000 .000 .000





positively related to consumers brand preference. Different studies conducted by Gezachew, et. al., (2012) and Ghafoor, et al.,

(2013) suggested that source of advertising message positively influences consumers brand preference.

Based on the result similarly advertising media and source of ad message have strong influence on brand preference, with beta

value 0.330 and 0.273 respectively, which is significant at 0.000. That means, they have impact on consumers brand preferences

of beer products. Results of different literatures also suggests that source of ad messages positively influence consumers brand

preference (Yang et al., 2007; Bearden, and Michael, 2001). Thus, the finding from the current study is supported by the extant

literature. Besides, the result of table 5 revealed that all variables of advertisement had equal impact or contribution on consumers

brand preference. Therefore, the hypothesis is rejected and alternative hypothesis is accepted.

Equation Formulation

y= b0 + b1x1+b2x2+…bnxn + E

Where, y= Dependent variable b0, b1, b2,… bn= coefficients

x1, x2,…xn = Independent Variable e= error terms

Taking into consideration the results from table 4.6 the regression equation for the study becomes.

y= -0.191+ 0.361 x1 + 0.259x2 + 0.450x3

Where, y= Brand preference x1= Advertising media

x2 = Source of advertising x3= Characteristics of ad message

As it is shown in the above equation, the degree of influence exerted on customers’ brand preference differs from variable to

variable. When advertising media increased by one percent, brand preference would increase by 36.1%, when Source of

advertising increased by one percent, brand preference would increase by 25.9%, and when Characteristics of ad message

increased by one percent, brand preference would increase by 45.0%. Even-though, the highest influence (45%) on consumers’

brand preference is exerted by characteristics of ad messages, each independent variable has positive and significant impact on

dependent variable (brand preference) of consumers’.

Ho3: All advertising media have no positive impact on consumers’ beer brand preference.

Table-6: Result of Regression Analysis for Advertising Media

Advertising Media

Un standardized

Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

(Constant) .185 .119 - 1.553 .121

Television .341 .046 .357 7.332 .000

Radio .239 .033 .262 7.356 .000

Internet .008 .026 .010 .298 .766

Newspaper .061 .023 .080 2.628 .009

Magazines .117 .028 .136 4.235 .000

Out door .199 .034 .215 5.867 .000

Note: a. Dependent Variable: Brand Preference


Table-6 reveals the result of multiple regression analysis between dependent variable (brand preference) and independent

variables (television, radio, internet, magazine, newspaper, and outdoor advertising). As shown in the table, the study revealed that

all independent variables such as television, radio, newspaper, magazines, and outdoor advertising media have significant level

when α = 0.05 (p<0.05) except the internet advertising having “p” value 0.766 which is greater than α = 0.05. That means all

advertising media have no equal impact on consumers brand preferences of beer products since the internet advertising has not

significant impact on consumers brand preference of beer products. Accordingly, the hypothesis is accepted and it can be

concluded that all advertising media have no positive impact on consumers’ beer brand preference.





H4: Each source of advertisement has no positive impact on consumers’ beer band preference.

Table-7: The Result of Regression Analysis on Source of Advertising

Coefficients

Source of Advertisement

Un standardized

Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

(Constant) .842 .112 7.504 .000

Advertising under taken by trained experts .198 .032 .243 6.113 .000

Advertising under taken by celebrities .488 .032 .566 15.096 .000

Peer groups and family influence .140 .025 .182 5.519 .000




variables (peer, family, experts and celebrities). As shown in the table, the study revealed that all reference groups have significant

level when α = 0.05 (p<0.05) which means all sources of advertisements have significant impact on consumers’ brand preferences

of beer products. Therefore, the hypothesis was rejected. The research conducted by Yang, et al., (2007; Bearden, and Michael

(2001), and Gezachew (2012) corroborated this finding.

Ho5: Characteristics of advertisement messages have no positive impact on consumers’ brand preference.

Table-8: Result of Regression Analysis on Characteristics of Advertising Message

Model Un standardized

Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

(Constant) .056 .113 - .495 .621

Using back ground music during advertisement .106 .024 .127 4.326 .000

Developing stories and documentaries .063 .017 .099 3.714 .000

Advertising with quality of the product .401 .033 .407 12.055 .000

Credibility of advertiser & the company .085 .021 .110 3.998 .000

Fulfilling both the company and the consumers’ interest .185 .023 .233 7.928 .000

Frequency of advertisement .089 022 .125 4.013 .000

Advertising tells me which brands have the features

I am looking for (Informative) .082 .020 .109 4.142 .000




variables (messages of advertisement). As shown in the table, the study has shown that all independent variables have significant

level when α = 0.05 (p<0.05). That means, they have impact on consumers brand preferences of beer products. According to the

result, all variables of messages of advertisement have equal impact or contribution on consumers brand preference. Therefore, the

hypothesis was rejected and alternative hypothesis was accepted. The research conducted by Vivekananthan (2010) supported this

finding.

Ho6: Celebrities have no positive impact on consumers’ beer brand preference.

Table-9: Result of Regression Analysis on Celebrity Endorsement

Coefficients


Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

1 (Constant) 1.352 .120 11.240 .000

Advertising under taken by celebrities .709 .027 .820 26.549 .000







Table-9 here above revealed the result of multiple regression analysis between dependent variable (brand preference) and

independent variable (celebrities). The table revealed that the advertising undertaken by celebrities has significant level when α =

0.05 (p<0.05). That means, celebrities have significant impact on consumers brand preferences of beer products. The research

conducted by Ling, K.C et al., (2010) supported this finding. Therefore, the hypothesis was rejected.

Ho7: The Income level has no significant impact on brand preference of beer.

Table-10: ANOVA of Brand Preference of Beer by Income Level

Sum of Squares d.f. Mean Square F Sig.

Between Groups 17.049 5 3.410 11.439 .000

Within Groups 101.347 340 .298

Total 118.396 345



Table-10 shows brand preference of beer by income level. The result of the study indicated that there is a difference on brand

preference of beer based on income level. F-value is 11.439 which is significant at p=0.000. Therefore, the hypothesis is rejected

and concluded that the income level has a significant impact on brand preferences of beer. The research conducted by Tondon R.,

(2007) supported this finding.

Ho8: The impact of advertising on beer brand preference is similar for all age.

Table-11: ANOVA of Brand Preference of Beer by Age

Sum of Squares d.f. Mean Square F Sig.

Between Groups 13.387 4 3.347 10.868 .000

Within Groups 105.009 341 .308

Total 118.396 345


Table 11 shows beer brand preference by age. The F-value is 10.868 which is significant at p=0.000. Therefore, the hypothesis is

rejected and it can be concluded that the impact of advertising on beer brand preferences varies by age. The research conducted by

Tondon R., (2007) supported this finding.

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RELEVANCE OF UNDERUTILIZED FRUIT CROPS FOR SUSTAINABLE FARM INCOME

IN TRIBAL AREAS OF WESTERN INDIA

Dr. D. K. Sharma3

ABSTRACT

Agriculture and horticulture plays a pivotal role in the rural economy, it not only contributes to overall farm income but also

reduces poverty by providing employment, food and nutritional security to the majority of tribal population, and thus it is the

most inclusive growth sectors of the rural economy. In last few decades, this sector is at crossroad and one of the major

challenges is to reverse deceleration in agricultural growth. On the other hand, many neglected and underutilized fruit

species are nutritionally rich and are adapted to low input agriculture. The use of these species, whether wild, managed or

cultivated, can have immediate consequences on the food security and well-being of the poor tribal. This paper aims at

exploring the relevance of Underutilized fruits for sustainable farm income in tribal areas of western India

KEYWORDS

Underutilized Fruit, Tribal, Farm Income, Food and Nutritional Security etc.

INTRODUCTION

Western part of India includes the states of Rajasthan, Gujarat, Maharastra, Goa and union territories of Dadra Nagar Haveli and

Daman & Diu, have 29.1 million tribal (ST) population out of which about 90 per cent resides in villages according to the census

of 2011. They are mainly depend on agriculture for their livelihoods and using plant biodiversity as primary source for food, feed,

shelter, medicines and many other products. Increased reliance on external inputs, pressure of industrialization and urbanization,

climate change and many other factors, adversely affected the productivity of land accompanied by a shrinking of the food basket

which humankind has been relying upon for generations. However, the shrinking of agricultural biodiversity has reduced both the

intra and interspecific diversity of crops, increasing the level of vulnerability among users, particularly the poorer sections, for

whom diversity in crops is a necessity for survival rather than a choice. The Indian agriculture sector is currently going through a

tough time. The agricultural activities are increasingly becoming vulnerable due to variety of reasons. The adverse impact of this

on the farming community, which is mostly living in rural areas, has started realizing in the form of poverty, unemployment, death

due to malnutrition etc. Tribal farmers having small land holding are becoming victims of such pathetic situation. The

underutilized fruits like Aonla, Tamarind, Karonda, Citron, Jackfruit, etc. are the main sources of livelihood for the poor and play

an important role in overcoming the problem of malnutrition. A large number of these fruits can grow under adverse conditions,

are also known for their therapeutic and nutritive value, and can satisfy the demands of the health-conscious consumers. However,

some of these fruits are not acceptable in the market in fresh form due to their acidic nature and astringent taste. Hence, there is a

need to concentrate on research efforts in diversification and popularization of such underutilized fruit crops. To achieve this,

there is a need to create demand for such fruit crops in the domestic and international markets. This, to some extent, can be

achieved through developing suitable processing and marketing strategies for these underutilized fruits.

REVIEW OF LITERATURE

Recent literature considers that the effect of agricultural progress on poverty alleviation is highly positive. Mellor (2001) argues

that it is not economic growth in general that reduces poverty in developing countries, but the direct and indirect effects of growth

in agriculture. In the study of poverty in India over 35 year periods, Datt and Ravallion (1998) find that higher farm productivity

reduces both absolute as well as relative poverty. This is partly due to direct channels of higher farm household income operating

in a short run and partly due to indirect channels, such as higher wages and lower food prices, in the longer run. Similarly, Loayza

and Raddatz (2010) 4 shows for a cross section of developing countries that growth in more labour intensive sectors, such as

agriculture, has a large impact on poverty reduction. Christian and Demery (2007) estimate that 1 per cent per capita agricultural

growth reduces poverty 1.6 times more than the same growth in the industry and three times more than same growth in service

sector. A change in attitude is noticed over the last 5-10 years among policy makers and the public with regard to the quality of

life as related to the quality of food as well as diverse sources of food. Vitamins and other micronutrients are for instance being

searched in crops and plant species with greater emphasis than in the past in recognition of their role in combating diet

imbalances. Although ‘hidden hunger’ affects mainly developing countries, particularly children and older people (FAO, 1997), it

is increasingly being recorded also among the more vulnerable social groups in developed nations.

3 Associate Research Scientist (Horticulture), Agri. Expt. Station, Navsari Agriculture University, Gujarat, India,

[email protected]






Leading international research organizations such as the Consultative Group on International Agricultural Research (CGIAR) are

also among those taking a keen interest in strengthening the work on underutilized species (Swaminathan, 1999). This global

“opening” towards underutilized species is the result of a gradual change of attitude towards biodiversity and plant genetic

resources by many countries. Instrumental in this awareness raising process have been the 1992 Convention on Biological

Diversity and the FAO IV International Technical Conference on Plant Genetic Resources for Food and Agriculture held in

Germany in 1996.The Global Forum on Agricultural Research (GFAR) in 1999 emphasized the role of underutilized species in

raising income of the rural poor.

Why Underutilized Fruits?

Food Security and Better Nutrition: Many neglected and underutilized species are nutritionally rich and are adapted to low

input agriculture. The use of these species, whether wild, managed or cultivated, can have immediate consequences on the food

security and well-being of the poor.

Increased Incomes for the Rural Poor: Growing demand from consumers in developed and developing countries for diversity

and novelty in foods is creating new market niches for neglected and underutilized species. These market opportunities can

generate additional income.

Ecosystem Stability: Climate change and the degradation of land and water resources have led to a growing interest in crops and

species that are adapted to difficult environments such as poor soil, degraded vegetation, drought and desert margins.

Cultural Diversity: The use of plants has long been an intimate part of local cultures and traditions. Many neglected and

underutilized species play a role in keeping cultural diversity alive.

Status of Underutilized Fruits

India is the second largest producer of fruits after China, with a production of 74.8 million tons of fruits from an area of 6.38

million hectares. A large variety of fruits is grown in India, of which mango, banana, citrus, guava, grape, pineapple and apple are

the major ones. In human nutrition, fruits and vegetables play an important role towards the making of a balanced diet. The term

“underutilized fruits” is applied, in the general sense, to a group of fruits presently growing in a scattered and unattended way on

roadsides, homestead land, wasteland etc. in spite of their potential for intensive exploitation. The plants belonging to this group

are hardy and grow well even in fragile soil and climate. Since the area under each of these is insignificant, they are popularly

known as “minor fruits”. Relevant information regarding area, production and commercial utility of different minor fruits required

designing R&D and marketing strategy for this group of crop is very much lacking.

Many of the fruits, which were not known before, have moved from rural confine, and have been commercialized. To name the

few are, Aonla, Tamrind, and Custard apple, Ber, Fig, Jackfruit and Jamun. This has been possible due to development of

cultivars and new technology. Bael (Aegle marmelos), Kamrakh (Averrhoa carambola), Phalsa, Wood apple, Mulberry, Lasora

are some of the fruits, which have potential to be commercialized. These fruits would fit into the system to utilize the climatic

variability. The consumers for its taste or nutritive values are demanding a number of tropical and sub-tropical fruits and nuts, like

Avocado, Rambutan, Mangosteen, Garcinia and Pummelos. Therefore, there is need to harness the potential of less known fruit,

which are indigenous to the country.

Table-1: The Major Underutilized Fruits of Different Ecological Regions

Ecological Region Fruit Crop

Tropical

and

Subtropical

Aegle marmelos (Bael), Buchanania lanzan (Chironji), Carissa species (Karonda), Cordia species

(Lasora), Diospyros melanoxylon (Tendu)

Garcinia species (Kokam, Malabar tamarind and Mysore gamboge)

Madhuca indica (Mahua), Manilkara hexandra (Khirni), Syzygium cumini (Jamun), Tamarindus

indica (Tamarind), Spondias pinnata (Amra), Averrhoea carambola (Carambola), Artocarpus

heterphyllus (Jackfruit), Morus species (Mulberry), Ficus carica (Fig), Physalis peruviana (Cape

gooseberry), Artocarpus lakoocha (Barhal or monkey jack), Cicca acida (Star gooseberry), Borassus

flabellifer (Palmyra palm), Syzyzium jambos (Rose apple), Annona species etc.

Arid and

semi-arid

Capparis decidua (Ker), Carissa species (Karonda), Cordia species (Lasora),

Emblica officinalis (Aonla), Grewia subinaequalis (Phalsa), Pithecellobium dulce (Manila tamarind),

Salvadora species (Pilu and Miswak), Tamarindus indica (Tamarind), Accacia Senegal (Kumat),

Feronia limonia (Wood apple), Prosopis senareria (Khejari), Apuntia ficus indica (Cactus pear),

Ziziphus species (Ber) etc.

Sources: Authors Compilation





Issues

In spite of better prospects in term of nutritional, health and ecological security, the underutilized fruits are neither popular nor

adopted as commercial fruit crop. The main reasons are as follows:

Little awareness about nutritional, medicinal and economic benefits of underutilized fruits among the urban population,

which are major consumer of horticultural products.

Poor taste, aroma and flesh content, besides unavailability of these products in the market in attractive and labeled

packages are other limiting factors.

Plantation of underutilized fruit crops are mostly on degraded lands with little care.

Non-availability of quality planting materials for establishment of new orchard of underutilized fruit crops.

Little standardization of agro techniques particularly, vegetative propagation, varietal development, nutrient and water

management, plant protection measures etc.

Inadequate marketing support and infrastructural facility for transportation, storage and processing.

Inadequate institutional support and least attention of financial institutions in setting up of small-scale industries in the

rural areas/ growing sites.

Measures to Promote Underutilized Fruit Crops

Underutilized fruit are nutritionally rich with high medicinal properties and are hardy in nature and adapted to low input

agriculture. Thus, better research and development efforts will add substantially to nutritional and health security.

Genetic erosion is a serious problem. A systematic conservation strategy is required for all distinct underutilized fruits at

national level, even if some are not seems to be important at the movement.

In phased manner, underutilized fruit crops should be prioritized and potential species should be included in detailed

institutional research programmer.

Yield and quality of underutilized fruit crops are generally poor, thereby hampering area expansion; thus systematic

crop improvement programmed is essentially required with high budgetary support.

Immense efforts are required for multiplication of desired quality planting materials and transportation, storage and

market access of perishable produce.

Organic food and health food are emerging as a global trend in the food and food-processing sector, which creates an

opportunity for underutilized fruits. Emphasis should be given for development of processing units. It would provide

better income and employment opportunity to the people.

Documentation of indigenous knowledge through ethno botanical is essentially required to tap the potential of their

multiple uses, medicinal properties and processed products.

Proper Human Resource Development at different level and institutional support is also required to promote

commercialized of underutilized fruits.

CONCLUSION

In developing countries, agricultural growth has a huge capacity to reduce poverty. Due to this potential, improving productivity

in the agricultural sector is essential. Underutilized fruit are nutritionally rich with high medicinal properties, are hardy in nature,

and adapted to low input agriculture, can assist the farm income to great extent along with nutritional security. Government will

need to play an important role for including Underutilized fruit in rural development and community-driven development

programmes for overall development of tribal population.

REFERENCES

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2. (1997). Human Nutrition in the Developing World. FAO Food and Nutrition Series No. 29. Food and Agricultural

Organization of the United Nations, Rome, Italy.

3. Loayza, N. V., & Raddatz, C. (2010). The composition of growth matters for poverty alleviation. Journal of

Development Economics.

4. Mellor, J. W. (2001). Faster more equitable growth – agriculture, employment multipliers and poverty reduction.

Agricultural Policy Development project Research report 4, Cambridge, MA





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to...

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22. Retrieved from http://gdimitriou.eu/?p=367

23. Retrieved from http://www.indigenousherald.com/index.php/features/103-bio-diversity-the-way-of-life

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https://www.researchgate.net/publication/252795051_Underutilized.

http://www.researchgate.net/publication/252795051_Underutilized_crops_trends_challenges_and_opportun.

https://www.researchgate.net/publication/252795051_Underutilized_crops_trends_challenges_and_opportu...

http://www.ebi.gov.et/biodiversity/components-of-biodiversity/plant-species-diversity/underutilized-...

http://ageconsearch.umn.edu/bitstream/96918/2/6-TM-Gajanana.pdf

http://www.researchgate.net/profile/Prasad/publication/215568220_Underutilized_vegetable_crops_Impac...

http://www.fao.org/fileadmin/templates/agphome/documents/PGR/PubPGR/drew1.htm

http://www.ifad.org/drd/agriculture/13.htm

https://ideas.repec.org/p/fpr/fcnddp/42.html

http://shodhganga.inflibnet.ac.in:8080/jspui/bitstream/10603/10254/6/06_chapter1.pdf

http://eprints.icrisat.ac.in/7856/

http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.31.1852

http://www.mitpressjournals.org/doi/abs/10.1162/0034653053327612

http://link.springer.com/article/10.1007/s00148-013-0488-2

https://www.researchgate.net/figure/271198577_fig6_Fig-6-Mosquito-abundance-in-villages-according-to...

https://www.researchgate.net/figure/271198577_fig6_Fig-6-Mosquito-abundance-in-villages-according-to...

https://www.researchgate.net/figure/271198577_fig6_Fig-6-Mosquito...

http://gdimitriou.eu/?p=367

http://www.indigenousherald.com/index.php/features/103-bio-diversity-the-way-of-life







ICT FOR AGRICULTURE AND RURAL DEVELOPMENT IN INDIA

Dr. Satyanarayan K. Kothe4

ABSTRACT

The digitalization can transform the agriculture sector and so the rural development can be accomplished in a short span of

time that would reduce the cost and enhance the productivity of both labour and land. In the wake of the National Food

Security Act, 2013, demand for food in India is going to increase and the fact is that India’s agriculture is highly depending

upon monsoon. In addition, Indian farmers have inclined heavily towards the cash crops, floriculture and horticulture and to

earn dollars by exporting high protein agriculture products to the foreign nationals in recent period. With the increasing and

persistent trade deficit it would not be advisable to fulfill the domestic demand for food, India should import heavily.

Therefore there is need to increase the domestic production of agricultural products. The government realized the importance

of ICT in agricultural and rural development and prepared a Policy Framework for Agricultural Extension, 2000 that cites

the benefits of ICT in agricultural extension and proposes the policy initiatives for agricultural development through ICT

innovations. The paper discusses the possibilities and policy implications of ICT for agriculture and rural development.

KEYWORDS

ICT, Agriculture, Rural Development, ICT strategies for Agriculture etc.

INTRODUCTION

The digitalization can transform the agriculture sector and so the rural economy that would reduce the cost and enhance the

productivity of both labour and land. In the wake of the National Food Security Act, 2013, demand for food in India is going to

increase and the fact is that India’s agriculture is highly depending upon monsoon. In addition, Indian farmers have inclined

heavily towards the cash crops, floriculture and horticulture and to earn dollars by exporting high protein agriculture products to

the foreign nationals in recent period. With the increasing and persistent trade deficit it would not be advisable to fulfill the

domestic demand for food, India should import heavily. Therefore there is need to increase the domestic production of agricultural

products.

Serious challenges must be addressed in order to achieve faster productivity growth, including infrastructure constraints, supply

chain inefficiencies and significant problems in the diffusion of and access to information. Small and marginal farmers, who make

up the vast majority of Indian farmers, are often unable to access information that could increase yields and lead to better prices

for their crops (Gandhi, Mittal, & Tripathi, 2009).

India experienced, like green revolution in agriculture, services revolution mainly dominated by Information and Communication

Technology (ICT) revolution and have got accelerated growth rate that is led by services sector which can best be viewed in terms

of its contribution to GDP, employment, capital formation and also FDI, trade, change in domestic demand for services and

world’s demand for India’s services (Kothe & Sawant, 2010; Kothe, 2012a, 2012b, 2013, 2014b, 2015). India produces ICT

output, with large pool of IT professionals that acquired IT education in recent years, which is one of the main inputs in

production in most of the sectors (Kothe, 2014a). In addition, the government realized the importance of ICT in agricultural and

rural development and prepared a Policy Framework for Agricultural Extension, 2000 that cites the benefits of ICT in agricultural

extension and proposes the policy initiatives for agricultural development through ICT innovations. The paper discusses the

possibilities and policy implications of ICT for agriculture and rural development.

ICT for Agriculture and Rural Development in India

Information and Communication Technology revolution is unfolding, and has very high visibility. However, its benefits have

remained confined primarily to the urban areas. Rural communities have not been able to gain to the same extent from IT. As a

means of agricultural technology transfer to farmers, information technology, has had a limited impact. Even the vast potential of

the broadcasting network has been tapped only minimally for extension. Policy Framework for Agricultural Extension, 2000

features Increasing Use of Information Technologies, IT Application in Agriculture Marketing, Wider Use of Electronic Mass

Media for Agricultural Extension, Farmer Participation in IT Programmes, and Support to States for Information Technology,

Private Information Shops/ Kiosks and Capacity Building for use of IT. The policy framework has been very fruitful to develop

the tools and systems through various pilot projects that could help the agriculture to sustain its growth momentum by enabling

4Assistant Professor, Department of Economics, University of Mumbai, Maharashtra, India, [email protected]






the sector information efficient and more productive. Since information as an input in agriculture sector, which has great

importance and if it is timely and reliable, it would rip the success in terms of increased productivity and low volatility of output.

The timely information on weather, agricultural extension, market information like demand, supply and prices, credit and

insurance is reaching farmers very quickly through the ICT platforms. India is not the exception for such a technological

innovation in information dissemination. As noted earlier mobile telephony in the rural India have expanded immensely, that have

connected the rural economy with the mainstream economy. Reddy and Ankaiah (2005) proposed a cost-effective agricultural

information dissemination system (AgrIDS), to disseminate expert agricultural knowledge to the farming community in order to

improve crop productivity. AgrIDS is a scalable system, which can be incrementally developed and extended to cover all the

farmers (crops) of India in a cost-effective manner. It enables the farmer to cultivate a crop with expertise, as that of an

agricultural expert, by disseminating both crop and location-specific expert advice in a personalized and timely manner.

In the Vidarbha region of India, Reuters Market Light (RML) provides customized mobile alerts to farmers on various aspects –

from sowing seeds to marketing agricultural produce. This has revolutionized the decision-making process resulting in improved

productivity and augmented incomes of the agricultural households (Hardikar, 2010).

RML is not the only model, being executed in India’s agriculture and rural sector. A few other area-specific parallels such as

IKSL are non-commercial and do not provide countrywide service. IKSL, run in partnership with Bharti Airtel by the Indian

Farmers Fertilizers Co-operative Ltd (IFFCO), requires the farmers to purchase a special SIM card to receive free voice-mails on

agricultural information at Rs 1 per minute. IKSL empowers farmers and people living in rural India with pertinent and high

quality information and services, through affordable communication network, in a sustainable manner. In addition, IKSL also

works concertedly to develop content and services, which will improve informed decision making by people living in Indian

villages. Individual success stories reveal that the farmers could earn more profits due to IKSL intervention that ranges 21 per cent

to 50 per cent.

Fisher Friend Mobile Advisory (FFMA) application in the Indian state of Tamil Nadu offers fishing related vital information to

fisher folk through mobiles for a safer and more profitable venture into the sea. The 2004 Tsunami brought to the forefront the

plight of the fisher community in India - a sector that has long been neglected from mainstream policy. The natural disaster

revealed the lack of access to fishing-related information, which adversely affects the livelihoods of fisher folk, often putting them

at great risks. Fisher folk use traditional techniques to predict weather and wave conditions. Information within the communities

typically travels through word of mouth. The Fisher Friend Mobile Advisory (FFMA) application by the M.S. Swaminathan

Research Foundation (MSSRF) in Tamil Nadu and Puducherry in collaboration with telecom and software companies uses mobile

technology to bridge this information gap, enabling the fishing communities to pursue their livelihoods in a safe and proactive

manner. The application enables a system of information flows whereby fishermen can gain access to fishing related information

such as weather forecasts, emergency contact information, details of high potential fishing zones (PFZ) and market prices to

enhance their productivity and ensure their safety. Upon sending a single-button-click request from an icon-based software

application on their mobile phone, fishermen access vital updates on wave height, wind speed and direction, potential fishing

zones, news alerts, government schemes and latest market prices in their local language (Tamil). This unique application is

helping fisher folk make better choices - to avoid hazardous situations and increase their incomes through efficient fishery. In

other words, it is enabling them to conduct their livelihood operations in a safe and profitable manner.

The Indian Meteorological Department having improved its weather forecasting has extended farming updates by text messages to

farmers through its Agromet Advisory Service. The nation as witnessed a significant rise in the contribution of its primary sector

to its GDP due to the advancement. According to a National Council of Applied Economic Research (NCAER) report, roughly 24

percent of farmers in over 550 districts are either aware or using the Agromet services, while two million farmers are availing the

mobile SMS service which started over a year ago. The report says the Rs 50,000 crore figure could rise to Rs 211,000 crore if the

entire farming community in the country was to judiciously use the Agromet information and apply it to agricultural activities.

Further report supplemented that the fishery advisory by the Met office has added Rs. 34,000 crore to the GDP.

According to Sailesh Nayak, secretary of the ministry of earth sciences, “The IMD (India Meteorological Department) has been

providing very accurate forecast at micro level, focused on small areas. The Agromet Advisory Service of IMD then translates this

information into information relevant for farmers’ use. The advances in the weather forecasting system have made the predictions

more accurate than ever before. The Agromet service even gives advice on what the farmer should do. For example, if a farmer

sprays pesticides and the rain comes, the pesticides will be washed away. Therefore, the Agromet will advise them not to spray the

pesticide. This way, resources are saved and so are the crops. "Also, while sowing seeds, the seeding can be done according to the

forecast of rain. If farmers sow and there is no rain in time, the seed spoils. Similarly, at the time of cutting, the rain can spoil the

crop. Fishery advisories entail offering information to fishermen cooperatives about the areas in the ocean where the fish catch is

likely to be high on a particular day. This, coupled with the information on the ocean state, enables fishermen to plan fishing

operations in an economically effective manner in the least time. The forecasts for natural disasters like tsunamis and cyclones

have also become more accurate. This translates into economic benefits as preparedness saves life and property.”





Similarly, agribusiness company ITC also operates several models of a rural internet kiosk programme, the ‘e-choupal’, serving

farmers across rural India. The version investigated for this report was anchored upon an internet kiosk manned by a local farmer

who acts as an agent for ITC called ‘sanchalak’.

A recent research carried out by ICRIER on the ‘Impact of Mobile Phones on Agriculture Productivity’ found evidence that

mobiles are being used in ways which contribute to productivity. When compared to other models, the ICRIER researchers found

the RML model most suitable to the farmers because of its customized nature and easy access.

Qiang, Kuek, Dymond, & Esselaar (2011) report the evolution and success of m-ARD (mobile applications for agriculture and

rural development. They stated that m-ARD could provide the most affordable ways for millions of people to access information,

markets, finance, and governance systems previously unavailable to them. Since m-ARD are, the software designed to take

advantage of mobile technology and can be developed for technology besides mobile phones. However, mobile phones have many

key advantages: affordability, wide ownership, voice communications, and instant and convenient service delivery.

The report entices that most m-ARD apps focus on improving agriculture supply chain integration and have a wide range of

functions, such as providing market information, increasing access to extension services, and facilitating market links. Users are

also diverse, including farmers, produce buyers, cooperatives, input suppliers, content providers, and other stakeholders who

demand useful, affordable services. These supply chain integration applications could provide significant economic and social

benefits—among them, creating jobs, adding value, reducing product losses, and making developing countries more globally

competitive. However, the potential development impact of m-ARD apps mainly lies in their ability to provide access to useful,

relevant information and services.

Quantitatively, the most widely used m-ARD apps provide access to valuable information—a crucial function because

asymmetrical access to information is a weakness of rural markets in developing countries (Qiang et al., 2011). Kenyan farmers

who use the app DrumNet, for example, have seen their incomes rise by a third due to the service’s comprehensive system of price

negotiation, contracting, and other value chain support. Farmers, forever at the mercy of the weather, insects and crop blights,

suffered from ‘informational asymmetry’ in the marketplace: the buyers have always known more than the sellers, using that

information to their advantage. Hyper connectivity has disrupted that informational arbitrage: farmers in Kenya use DrumNet, a

mobile service that allows them to check the current market prices for their produce at a range of locations. When a farmer readies

his crop for sale, he sends a text message to DrumNet, using the response to choose the market, which will give him the best

return for his efforts. Just as Kerala fishermen phone around for the best price for their catch, a Kenyan farmer can quickly learn

where he will get the best price for his vegetables. Hyper connectivity makes informational asymmetries a thing of the past; every

party to a transaction can negotiate a sale fully informed. With DrumNet, Kenyan farmers have been earning as much as 40 per

cent more for their crops – a rate of return which makes the service a very good investment (Pesce, 2012).

M-ARD apps also provide farmers and rural residents with timely access to extension services, such as advice on agricultural

production, marketing, and technology, food security, and nutrition. Sri Lanka’s e-Dairy helps farmers earn up to $262 more a

year for each of their calves by providing veterinary and extension services delivered by mobile phones. Such applications also

strengthen market links when used to improve production distribution and traceability. Tea growers in Kenya have reported

average income growth of 9 percent - about $300 a year - by using Virtual City’s production measuring, recording, and

traceability functions (Qiang et al., 2011).

In addition, m-ARD apps have expanded access to finance and insurance products in rural areas. Applications like M-PESA in

Kenya and SMART Money and G-Cash in the Philippines have gained acceptance as safe, easy ways to receive payments and

store money. Also in Kenya, users of Kilimo Salama’s agricultural insurance products have seen their production increase by an

average of more than 50 percent, or about $150 a year (Qiang et al., 2011).

M-ARD apps also have significant qualitative impact, though such benefits are harder to assess objectively and largely depend on

the local context. For example, Ushahidi, developed in Kenya and now used in other countries, uses a crowdsourcing approach to

increase government transparency, provide information about domestic events (including social unrest), and support timely

interventions in disaster-hit areas, such as in in Haiti after its disastrous 2010 earthquake (Qiang et al., 2011).

In India there are number of websites that help farmers by dissemination of information on agricultural and extension. The

aAQUA, KISSAN Kerala, TNAU AGRITECH Portal, AGRISNET, DACNET, e-Krishi, ASHA, India Development Gateway

(InDG) portal, Rice Knowledge Management Portal (RKMP) and Agropedia are few web based information systems that render

the service to provide customized information on agriculture that help farmers to get the latest information on various agricultural

products, processes and technologies.

There are few agribusiness firms to help the farmers to get the latest information about market changes and help in selling their

products in the market as well few companies like - ITC buys from farmers through web portals. These web portals include





AGMARKNET, ITC’s e-Choupal, EID Parry’s Indiagriline, Indiancommodities.com, Mahindra Kisan Mitra, IFFCO Agri-Portal,

Agrowatch Portal and iKissan that provide the information on processes in agriculture, agricultural marketing and extension.

A few ICT enables services like 101 Village Knowledge Centres (VKCs) by M.S. Swaminathan Research Foundation (MSSRF)

in Tamil Nadu, Puducherry, Maharashtra, Orissa, Andhra Pradesh and Kerala state of India. VRCs and VKCs work with 315

partners for implementation and location specific content generation. Demand driven information and knowledge with support

services, social inclusion, community ownership and partnership proved critical for the success and sustainability. 473 Village

Resource Centres (VRCs) by Indian Space Research Organization (ISRO) have been set up in 22 States / Union Territories in

India. The VRCs are connected to Knowledge / Expert Centres (ECs) like Agricultural Universities and Skill Development

Institutes (SDI). Over 6500 programmes have been conducted by the VRCs in the areas of agriculture / horticulture, fisheries,

livestock, water resources, tele- health care, awareness programmes, women empowerment, supplementary education, computer

literacy, Micro credit, micro finance, skill development/ vocational training for livelihood support etc. So far, over 500000 people

have availed VRC services. Community Information Centres (CICs) take efforts in North-East India e-Infrastructure for accessing

rural information needs of farmers and others. There are 96163 Common Service Centres (CSCs) which provide web based e-

governance services, including agriculture information to rural areas.

There are few ICT services for agricultural extension based on telephoney and mobile telephoney. The Farmers Call Centre

(Kissan Call Centre) answer various queries asked by farmer’s relation to agricultural extension. There are 32 Farmers Call

Centres, which answered 2043636 farmers calls’ during 2010-11, total calls answered during last five years (2005-2010) were

6247911. Lifelines India renders extension activity through connectivity by innovative mix of internet and telephony. In addition,

it reaches to 2 lakh farmers in three States of India. IFFCO Kisan Sanchar Limited (IKSL) serves through voice messages in local

languages. IKSL delivered 95,000 voice messages and 81000 Q&A repository with 5000 feedback messages from the farmers. 10

Lakh active farmers are benefiting from IKSL's Value Added Services and IKSL enrollment crosses 4 million and 40000

cooperative societies as IKSL Retailers. As stated earlier Fisher Friend, a consortium of QUALCOMM, MSSRF, Tata teleservices

and Asute system technology, jointly implemented mobile based advisory services (instant access to helpful information such as

weather conditions, where they can and cannot fish and market prices) to fishing communities of costal Tamil Nadu since 2007.

As discussed earlier Reuters Market Light (RML) designed micro-information services specifically for the farming community,

which was launched by RML in 2009. Currently RML covers over 440 crops and varieties with more than 1400 markets and 2800

weather locations of 15000 villages in 13 States of India. Timely and personalized information and individual farmers have reaped

significant return on their investment. Mobile Advisory Services by Krishi Vigyan Kendras (KVKs) of Indian Council of

Agricultural Research (ICAR) renders the agricultural extension services to the farmers through the Krishi Vigyan Kendras (Farm

Science Centres) have been operational in India since 2010.

Besides the above ICT practices for agricultural and rural development, there have been few hybrid initiatives which involves the

product mix of ICT, infomediaries and traditional methods of information dissemination which includes e-Arik, e-Sagu, Digital

Green and Knowledge Share Centres. E-Arik is a mix of Internet, Offline CDs and farmer-to-farmer communication, conventional

extension methods. A study among 300 farmers indicated that an average Rs. 5252 was increased among 73 e-Arik registered

farmers who were growing Khasi mandarin. Similarly, an average Rs. 1611 was increased among 258 paddy farmers who were

registered with e-Arik initiative. Comparing traditional extension system and e- Arik project, the cost and time indicators shown

sixteen fold reduction in cost and three fold less time were required to the clientele availing and extension system delivering

extension services. e-Sagu provides agro-advisory services by digital photographs and coordinators for 3035 farmers (4130 ha).

Digital Green renders farmer participatory videos for agricultural extension. Digital Green produced 1681 videos involving 60313

farmers. Knowledge Share Centres shares information through touch screen kiosks, IVRS, bilingual web portal and creates

awareness by screening films & CDs by the Central Research Institute for Dryland Agriculture (CRIDA), Hyderabad. This project

covered 51 villages in eight districts of Andhra Pradesh State in 2011.

CONCLUSION

Among all the attempts, most of the initiatives are pilot projects and had faced many impediments. All such limitations are listed

by Saravanan (2012) that includes pilot project syndrome, unsustainable large investments, users not willing to pay, small scale of

operations, knowledge middle men with less permanency, information alone in not sufficient for development, difficulty in

localization of contents, generic information, one way information flow, islands of learning, lack of systemic evaluation and lack

of co-ordination.

Saravanan (2012) has suggested national and state level e-agriculture policy, human resource development in ICT context,

strengthening ICT infrastructure, localization and customization of contents, integration of ICTs with public-private extension

systems, collaboration of agricultural research and development institutions, convergence of modern and conventional

communication methods and ICTs, integration of ICTs and Information and Communication Managements (ICMs) for

agricultural extension, promotion of social networks and open source materials and promote leadership and champions.





All the ICT attempts in India for agriculture extension and rural development suggest that rural India is becoming more and more

ICT literate. In addition, in coming years India would be the largest mobile subscribing and internet using country. Despite of PPP

projects at micro level, government should prioritize customized ICT extension services for all the farmers in all states. The study

proposes a separate institutional set up for conducting all sort of agricultural extension services at national level in association

with the private players. Moreover, the states should be under the national umbrella to customize the extension activities. All the

agricultural research institutions and universities need to be involved in the umbrella project. There is also need for compulsory

ICT literacy that includes mobile and internet literacy among the farmers like Adult Literacy Programme and all the required ICT

hardware and equipment’s be made available to the farmers at subsidized rates like BSNL provides special SIM card for farmers

and also connects the farmers at special rates. The initiatives could enhance the productivity in agriculture and support the

economic growth to sustain its momentum.

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*****

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A STUDY OF REGIONAL DISPARITIES IN WHEAT AND RICE PRODUCTION IN INDIA

Rameez Ahmad5 Md. Tarique6

ABSTRACT

Almost six decades have passed since India got independence and during this period, Indian agriculture has passed through

tremendous changes. The responsible factors for these changes were different in different periods. The decades of 1950s and

1960s were marked by institutional reforms in the form of mainly land reforms and development of irrigation and other

infrastructure played a major role in output growth. Technological breakthrough has been the prime mover during 1970s and

spread of technological changes to wider areas and crops have been the main factor during 1980s. The next phase of 1990

onwards is known as the phase of liberalization, privatization and globalization. From mid-1990s, the period is also termed as

post WTO period. In this phase, the gains to agriculture will not only be confined to domestic policies but also to the

integration of the economy with the rest of the world. The pattern of agricultural growth is very uneven across regions.

Regional disparity in India is a matter of great concern. Proper information regarding the level of agricultural development

on the regional basis is requisite to design policies for the development of backward and laggard regions of India. The present

research paper is an attempt to analyses the disparities in the production of wheat and rice across Indian states in the post

WTO period. The study has also tried to find the degree of convergence/divergence in the production of both the crops over

the period.

KEYWORDS

Agricultural Production, Disparities, Convergence / Divergence, Institutional Reforms, WTO etc.

INTRODUCTION

Agriculture, in most developing economies, is the core sector-providing livelihood to a larger part of the population, especially in

rural areas. Since this sector faces the largest brunt of underemployment, unemployment and poverty, a growing agriculture sector

has expected to contribute vastly to overall growth and poverty alleviation. Increasing the productive capacity of agriculture

through higher productivity has been an important goal of developing countries. The growth of agriculture has a direct impact on

poverty alleviation. An important sector generates employment to large population of a country. In the words of David Metacalf,

“agriculture makes six contributions to economic growth, increased food supplies; release of labour to industry; resources for

industrial development; market creation; export earning; and overseas aid” (Metacalf) Agriculture, therefore, is one of the oldest

form of economic activity undertaken by people of the world and central to all planned socio-economic development of

economies.

Almost six decades have passed since India got independence and during this period, Indian agriculture has passed through

tremendous changes. The responsible factors for these changes were different in different periods. The decades of 1950s and

1960s were marked by institutional reforms in the form of mainly land reforms and development of irrigation and other

infrastructure played a major role in output growth. Technological breakthrough has been the prime mover during 1970s and

spread of technological changes to wider areas and crops have been the main factor during 1980s. The decades of 1960s and

1970s also witnessed high growth in public investments in agriculture, which improved infrastructural base for growth of

agricultural output in the country in the following decade. The next phase in Indian agriculture began in the early 1980s. There

was a considerable increase in subsidies and support to the agricultural sector during this period, while public sector spending in

agriculture for infrastructure development started showing a decline in real terms, but investments by farmers remained

increasing. The marketing facilities were also given due importance. The next phase of 1990 onwards is known as the phase of

liberalization, privatization and globalization. From mid-1990s, the period is also termed as post WTO period. In this phase, the

gains to agriculture will not only be confined to domestic policies but also to the integration of the economy with the rest of the

world.

During the last two decades Indian agriculture has been facing major challenges like deceleration in growth rate, inter-sectoral and

inter-regional inequality, declining input efficiency, degradation of natural resources, etc. with consequent adverse effects on food

and nutritional security, food inflation and poverty reduction. Not only the overall growth scenario is very poor, but also its

regional scenario is also very dim. Indian economy is one of the world’s largest economies with the existence of diverse region

with different resource base. The pattern of agricultural growth is very uneven across regions. Regional disparity in India is a

matter of great concern. Regional inequality does not only exist in India as unbalanced development and regional disparities are

inherent phenomenon of both developed and developing countries. China, USA and other countries also faces this problem, which

5Research Scholar, Department of Economics, Aligarh Muslim University, Uttar Pradesh, India, [email protected] 6Professor, Department of Economics, Aligarh Muslim University, Uttar Pradesh, India, [email protected]







is very dangerous in the context of world food security and in the changing scenario of demand for food of high value. Therefore,

proper information regarding the level of agricultural development on the regional basis is requisite to design policies for the

development of backward and laggard regions of India. The states in India are marked with wide disparities in socio-economic

development. The present research paper is an attempt to analyses the disparities in the production of wheat and rice across Indian

states in the post WTO period. The study has also tried to find the degree of convergence/divergence in the production of both the

crops over the period.

OBJECTIVES OF STUDY

The main objectives of the present study are as follows:

To examine the inter-state disparities in the production of Wheat and Rice in Indian states.

To study the convergence/divergence in the production of Wheat and Rice across Indian states.

Hypotheses: Keeping in view of the objectives, the whole study is based on the following hypotheses:

The inter-state disparity in production of Wheat and Rice in India has decreased in the post liberalization period.

Database: The study is mainly based on the secondary data collected from various sources. This study covers 15 major wheat and

rice producing states of India, namely, Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Karnataka, Madhya Pradesh,

Maharashtra, Orissa, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand and West Bengal. We have used food grains production of

rice and wheat for our analysis. The time period covered is 2000-01 to 2012-13. The data on state wise annual food grains (rice

and wheat) production for the period 2000-2013 have been collected from ‘Data Base for the Indian Economy (DBIE)’ published

by the Reserve Bank of India (www.rbi.org), Ministry of agriculture Government of India and www.indiastat.com.

Methodology: The simple measure of convergence is to compute the standard deviation (SD) or coefficient of variation (CV) of

the log of per capita income over time to see whether the dispersion rises or falls. This is the test for σ-convergence.

The standard deviation measures dispersion in variables i.e. production of rice and wheat in every states over a period. Standard

deviation is defined as average of square root of deviation from their mean. It is an average index of inequality for all regions.

S. D =√(X−X)

2

N

Where,

SD = Standard deviation

X = Values of Production

X = Mean of Production

N = number of years

Coefficient of Variation: The coefficient of variation is a relative measure of dispersion. It measure as a ratio of standard

deviation to mean value. The method is used to measure variability in production of rice and wheat between the states during the

period.

C.V. = (S.D./Mean) *100

Where, C.V. = coefficient of variation

S.D. = standard deviation

Mean = average of Production of wheat and rice

Coppock’s Instability Index: Coppock (1962) measured international instability in exports and imports through log variance

method. This method like, coefficient of variation also measures variation in production of Wheat and Rice food grains. As the

Coppock instability index is estimated, higher numerical value represents greater instability. The present study has used this

method to estimate instability in production of Wheat and Rice in major states of India and compared whether instability is also

high in those states where variability in production is high.





Estimation of Extent of Instability: The Coppock’s instability index (CII) is defined as follows: CII is the close approximation

of the average year-to-year percentage variation adjusted for trend.

C.I.I. = [Anti log √ log V – 1]*100 and

Log V =Σ [log (Xt + 1 / Xt )-m ]2

N-1

Where, Xt = Area/production/Yield in the year’s‘t’

N = Number of years

m = Arithmetic mean of the difference between the logs of Xt+1, Xt etc.

V = Logarithmic variance of the series.


A large number of studies have examined regional economic growth and disparity in India. We make a brief review of the

findings of the earlier studies to compare them with the present one.

Sawant S. D. and Achutan C. V.(1995) in their research paper titled ‘Agricultural Growth Across Crops and Regions’ studied and

conclude that, state or regions which lagged in behind considerably during the period 1968-69 to 1981-82 were able to push up

their share considerably during the period 1981-82 to 1990-91. Thus, they have shown regional disparities in agricultural growth

tended to decline in the period 1980s. They have computed CAGRs of State Domestic and found that excepting western region

(Gujarat, Maharashtra) and Andhra Pradesh from Southern region the process of acceleration in agricultural growth was almost

universal across the states in period 1981- 82 to 1990-91. Moreover, the northwestern region, which spear headed. India’s green

revolution continued to be the high growth region even during period II (1981-82 to 1990-91).

Das and Barua (1996) in their paper titled ‘Regional Inequalities, Economic Growth and Liberalization: A Study of Indian

Economy’ examined several dimensions of regional economic disparities among twenty three states over the period of 1970-92 by

Computing Thiele’s index, a measure of inequality. They showed trends (linear and non-linear) in regional disparities in terms of

SDP (state domestic product) due to agriculture, manufacturing and service sector and found that interstate disparities increased in

almost all the sectors. They also explained non-linear relationship between regional inequality and per capita income. A very

important conclusion of this study was related to radical policy reforms (radical departure from the previous policies of

concentrating the efforts of green revolution only in a few regions of northern India and adopting policies towards horizontal

expansion across all the regions) which could give priority to agriculture, services and unregistered manufacturing for the

reduction of inter-regional inequality.

Somra (2000) in his paper ‘Regional Disparities: An Analytical View’ attempted to find out the irregular spatial development of

the Indian economy and sectoral disparities and made an assessment of regional disparities in terms of per capita net state

domestic product data at factor cost. Results revealed increase in regional disparity as coefficient of variation increased in the post

liberalization period compared to the pre liberalization period. The paper also examined trends of growth rate among the states

and found fluctuation among the states in terms of growth rate. He showed his concern about the existence of regional disparities

under the economic reforms and showed insensitiveness of the Planning.

Dadibhavi, R.K. and Bagalkoti, S.T. (2006) in their paper titled ‘Reforms and Regional Inequality in India’ estimated the trends in

inequalities in the levels of income and growth of the major seventeen states of India during the post-reform period by using the

coefficient of variation method. The estimation revealed disparity in the level of state incomes especially in the reform period and

these income inequalities have increased. The study emphasized on attracting more resources, creating an enabling environment

such as overall investment, investment in agriculture, improvement in basic infrastructural facilities like transport in backward

states and upgraded governance.

Chand Ramesh and Raju S. (2007) have studied about the instability in Andhra Pradesh agriculture. They argued that, instability

in farm product is causing series shocks to supply and farm income and there is a growing concern about increased volatility in

farm production, prices and farm income. Their study estimated instability in major crops in Andhra Pradesh before and after the

initiation of economic reforms. Instability was associated with selected crops was estimated by using the instability index. Their

study revealed that, in a large state like Andhra Pradesh, and which is the case for most of the states in India, the instability states

as perceived through the state level data may be vastly different from that experienced at the disaggregate level. They concluded

that the state level analysis does not reflect complete picture of shocks in agricultural production and further shocks in production

under estimates shocks in farm income. At the end, they suggest that, the need for addressing risks in farm income by devising

area-specific crop insurance or other suitable machines.





IDENTIFIED GAP IN LITERATURE

In spite of considerable research made on the subject, much more remains to be done to explore the extent of differences in

growth among states in order to calibrate appropriate policies to achieve balanced regional economic growth. While going through

the review of literature on the concerned topic we came across several gaps:

Most of the studies have used only GSDP, NSDP of production of states to study the growth pattern across states.

However, to study the pattern of regional economic growth in real sense it becomes necessary to use the actual data of

production and productivity of different states. The present study will use the data of foodgrain (wheat and rice) to find

out inter-state disparity in agriculture.

There are limited studies on regional disparity in Indian agriculture after 2000. Therefore, there is a need to update the

study. The study is also important as WTO quantitative restriction on agriculture export and import was fully abolished

in the year 2000-01.

ANALYSING PRODUCTION

Wheat Production in Major States

During independence, the country was dependent on wheat import to meet the food demand of the country. Due to low yielding

nature of Indian wheat under high fertility conditions, there remained a continuous need for a breakthrough in wheat production. It

was finally the dream of Dr. Norman E. Borlaug, the father of green revolution during mid-sixties that came true to materialize the

spurt of the Green Revolution in the Indo Gangetic plains by which India became a wheat surplus country from a deficient one.

The production level of Wheat in India had a quantum jump from 6.46 million tonnes from an area of 9.75 million ha in 1950-51

to 105.3 million tons from an area of about 30 million hectares during 2011-12. India has become the world’s largest producer

across a range of commodities due to its favorable agro-climatic conditions and availability of rich natural resource base.

Currently, India is the second largest producer of wheat in the world after China with about 12 percent share in the world. Wheat

is grown in India in an area of about 30 Million hectare with a production of 105.3 Million tons. The normal National productivity

is about 2.98 tons/ha. The major Wheat producing States are Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan, Bihar,

Maharashtra, Gujarat, Karnataka, West Bengal, Uttarakhand, Himachal Pradesh and Jammu & Kashmir. These States contribute

about 99.5% of total Wheat production in the country. Remaining States, namely, Jharkhand, Assam, Chhattisgarh, Delhi and

other North Eastern States contribute only about 0.5 % of the total Wheat production in the country.

Table-1: Production Trend of Wheat in Major States of India

Production in (‘000 tonnes)

Sources: Database on Indian Economy, RBI report 2013-14

STATES AP ASS BIH CHAT GUJ HAR KAR MP MAH ORI PUN RAJ UP UK WB INDIA

2000-01 8 86 4438 80 649 9669 244 4869 948 12.90 15551 5547 25168 715 1059 69820

2001-02 9 85 4391 104 1145 9437 199 6001 1077 10.60 15499 6389 25498 735 962 72912

2002-03 14 78 4041 99 857 9192 147 4923 984 5.80 14175 4878 23612 750 887 65760

2003-04 7 73 3689 109 2037 9114 96 7365 778 7.50 14489 5876 25567 745 986 72300

2004-05 5 68 3263 82 1806 9058 179 7177 1016 5.00 14698 5707 22514 803 842 68637

2005-06 9 54 3239 91 2473 8857 217 5958 1300 4.50 14493 5865 24074 645 774 69355

2006-07 9 67 3911 92 3000 10055 205 7326 1631 5.80 14596 7056 25031 801 800 75807

2007-08 8 71 4450 99 3838 10236 261 6033 2078 8.70 15720 7125 25679 814 917 78570

2008-09 16 55 4410 93 2593 10808 247 6522 1516 7.40 15733 7287 28554 797 765 80679

2009-10 9 64 4975 93 2739 10870 222 7214 1846 6.50 15540 6327 28279 831 901 80804

2010-11 10 64 4670 127 3854 11040 245 7627 2292 4.70 15828 7215 30001 887 842 86870

2011-12 8 59 4787 133 4100 12686 194 10580 1313 2.70 17207 9320 30293 878 884 93904

2012-13 7 57 5375 133 3135 11117 172 13133 875 2.10 16106 8954 30302 838 907 92458

MEAN 9 68 4280 103 2479 10165 202 7287 1358 6.48 15357 6734 26506 788 886 77529

SD 2.91 10.68 634.69 18.04 1138.65 1107.43 46.07 2276.28 483.68 3.01 840.60 1293.89 2662.59 67.92 84.57 9107.88

CV 31.80 15.78 14.83 17.60 45.94 10.90 22.79 31.24 35.62 46.46 5.47 19.21 10.05 8.62 9.54 11.75

CAGR -1.1% -3.4% 1.6% 4.3% 13.1% 1.2% -2.9% 8.3% -0.7% -15.1% 0.3% 4.0% 1.5% 1.3% -1.3% 2.3%





Table-1 shows that major wheat producing states in India are the states of Uttar Pradesh, Punjab, Madhya Pradesh, Haryana and

Rajasthan. These five states together contribute more than 70 percent of the total wheat production in India. In the state of Uttar

Pradesh the production of wheat rose to 30301.9 thousand tons in the year 2012-13 from 25168.3 in 2000-01. About 30 percent of

wheat is produced in state of Uttar Pradesh due to its large area under wheat production. Wheat is produced in almost every part of

Uttar Pradesh but the greatest concentration is in western Uttar Pradesh. From the year 2000-01 to 2009-10 the production of

wheat has remained same but it was in the year 2010-11 that the production of wheat rose to 30001 thousand tons. Punjab is the

second largest wheat producer in India after Uttar Pradesh. It contributes about 20 percent of the total wheat produced in India. In

the state of Rajasthan the production of wheat rose to 8953.5 thousand tons in 2012-13 from 5547 thousand tons in the year 2000-

01. The highest increase in the production of wheat was registered in the state of Madhya Pradesh where wheat production rose to

13133.4 thousand tons in the year 2012-13 from the production of 4869.4 thousand tons during 2000-01. The main reasons for the

increase in wheat production are assured canal irrigation, covering fellow land under cultivation, warehousing and infrastructure,

credit management, agriculture extension and technology, fertilizer supply management and regular electricity supply. It is

expected that if conditions remain favourable, then MP will be able to surpass Punjab in the coming year.

During the period under study, the average production of wheat has differed from state to state. From all states, Uttar Pradesh has

registered the highest average production of wheat, while Orissa has the lowest average production of wheat. Punjab occupies the

second place in case of average production of wheat in India. The average production of wheat in Uttar Pradesh is 26505.51

thousand tons during the period 2000-01 to 2012-13, while in the state of Orissa the average production of wheat is registered at

6.48 thousand tons during the same period.

The growth rate in production during 2000-01 to 2012-13 is found to be negative in the states of Andhra Pradesh, Assam,

Karnataka, Maharashtra, Orissa and West Bengal, and positive in the states of Bihar, Chhattisgarh, Gujarat, Haryana, Madhya

Pradesh, Punjab, Rajasthan, Uttar Pradesh and Uttarakhand. At all India level, the growth rate in the production of wheat is also

positive. The growth rate in the production of wheat is highest in Gujarat; here the production of wheat grew at the rate of 13.12

percent during the period of 2000-01 to 2012-13. The growth rate in the production of wheat in Gujarat is mainly because of

increase in the area of cultivation for wheat. There is highest decline in the production of wheat in Orissa; the negative growth rate

is 15.13 percent. This has been due to the fall in area of wheat production.

The coefficient of variation shows fluctuations in the production of wheat in all states during the period. From the table it has to be

seen that there is high variability in the production of wheat in all states except the states of Punjab, Uttarakhand and West Bengal.

The variability in the production of wheat is highest in the state of Orissa and Gujarat i.e. 46 and 45 percent respectively. The high

variability in Orissa is because of decrease in the production of wheat due to fall in the area under wheat production. The farmers

have shifted their pattern from wheat cultivation to the cultivation of rice due to the climatic condition of Orissa, rise in the cost of

production or unavailability of fertilizers, due to wrong government policies.

Table-2: Production of Wheat in Major States of India

Production in (‘000 tons)

Sources: Database on Indian Economy, RBI report 2013-14

Table-3: Mean and Coefficient of Variation of Production of Wheat

States Bihar Gujarat Haryana Madhya

Pradesh Maharashtra Punjab Rajasthan

Uttar

Pradesh

Mean 4280 2479 10165 7287 1358 15357 6734 26506

C.V. 14.83 45.94 10.90 31.24 35.62 5.47 19.21 10.05

Sources: Author’s Calculation

Production of Rice in Indian States

Rice is the most important crop in India, which played a key role in the food security. It is the important staple food for more than

half of the world population and provides 60-70 per cent body calorie intake to the consumers. Rice is a supreme commodity to

STATES 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

HAR 9669 9437 9192 9114 9058 8857 10055 10236 10808 10870 11040 12686 11117

MP 4869 6001 4923 7365 7177 5958 7326 6033 6522 7214 7627 10580 13133

PUN 15551 15499 14175 14489 14698 14493 14596 15720 15733 15540 15828 17207 16106

RAJ 5547 6389 4878 5876 5707 5865 7056 7125 7287 6327 7215 9320 8954

UP 25168 25498 23612 25567 22514 24074 25031 25679 28554 28279 30001 30293 30302





humankind, because rice is truly life, culture, tradition and a means of livelihood to millions. In recognition to these important

qualities of rice, the United Nations General Assembly, in a resolution declared the year 2004 as the International Year of Rice.

Rice is one of the most important food crops of India in term of area, production and consumer preference. India is the second

largest producer and consumer of rice in the world. Rice production in India crossed the mark of 100 million tons in 2011-12

accounting for 22.81% of global production in that year. The productivity of rice has increased from 1984 kg per hectare in 2004-

05 to 2372 kg per hectare in 2011-12. Indian share in global rice production has been hanging in the range of 19.50 to 24.52 %.

Indian share dipped below 20 percent only in 2009-10.Rice is produced in almost every state but the major rice producing states

which contribute higher share in India are Andhra Pradesh, Assam, Bihar, Chhattisgarh, Orissa, Punjab, Uttar Pradesh and West

Bengal. These eight states together contribute more than 70 percent of total rice production in India.

Table-4: Production Trend of Rice in Major States of India

Production in (‘000 tons)

Sources: Database on Indian Economy, RBI Report 2013-14

From the table-4, it has to be seen that rice is produced in every state but the major states where the production of rice is high are

Andhra Pradesh, Assam, Bihar, Chhattisgarh, Orissa, Punjab, Uttar Pradesh and West Bengal. West Bengal is at the first position

in the production of rice followed by Uttar Pradesh, Andhra Pradesh and Punjab. In the state of West Bengal, rice is produced in

both summers as well as in winter season. Production trend of rice has been increasing in all states and at all India level. The

production of rice is highest in West Bengal which produced 15023 thousand tons in the year 2012-13. From the year 2000-01

there is constant increase in the production of rice in West Bengal, the growth rate during the period is 1.58 percent in West

Bengal. Uttar Pradesh is at second place where the production of rice is high. In the year 2012-13, Uttar Pradesh produced 14413

thousand tons of rice whereas in the year 2000-01 it produced 11679 thousand tons of rice. The rate of growth of production of

rice in Uttar Pradesh during the period is 1.75 percent. Andhra Pradesh and Punjab are the other states where the production of

rice is high. At all India level rice is produced in almost every state but the larger share came from West Bengal, Uttar Pradesh,

Punjab, Tamil Nadu and Andhra Pradesh, Chhattisgarh and Bihar.

During the concerned period, West Bengal has registered the highest average production of rice followed by Uttar Pradesh and

Andhra Pradesh. The average production of rice in West Bengal is 14419.3 thousand tons and in Uttar Pradesh and Andhra

Pradesh the average production of rice is 11930.4 and 11556.2 thousand tons respectively while the growth rate is negative in

Andhra Pradesh. The growth rate is found to be the highest in the state of Gujarat, Chhattisgarh and Madhya Pradesh at 9.85, 8.55,

8.66 percent respectively, and negative in the state of Karnataka and Uttarakhand. The rise in the growth rate in Gujarat and

Madhya Pradesh is because of improvement in the irrigation facilities and availability of fertilizer and use of high yielding variety

seeds.

STATES AP ASS BIH CHAT GUJ HAR KAR MP MAH ORI PUN RAJ UP UK WB INDIA

2000-01 12458 3998.5 5442.6 2369.3 472.7 2695 3846.7 982.1 1929.2 4614 9154 155.7 11679 621.5 12428 84977

2001-02 11390 3854 5202.9 5073.7 1040.1 2726 3234 1692.7 2651.4 7148 8816 180 12856 614.4 15257 93340

2002-03 7327 3738 5085.5 2634.9 541.7 2468 2390.1 1031.8 1854 3276.7 8880 67.9 9594.9 483 14389 71820

2003-04 8953 3880 5447.8 5567.6 1277 2790 2550.3 1750.3 2835 6733.7 9656 164.8 13019 569 14662 88526

2004-05 9601 3470.7 2472.2 4383.3 1238.2 3023 3547 1169 2164 6466 10437 150.4 9555.6 572 14885 83132

2005-06 11704 3552.5 3495.5 5011.6 1298 3210 5744 1656.3 2695 6859 10193 153 11134 590 14511 91793

2006-07 11872 2916 4989.3 5041.4 1390 3371 3446 1368.4 2569 6824.7 10138 169.8 11124 556 14746 93355.3

2007-08 13324 3319 4418.1 5426.6 1474 3613 3717 1461.9 2996 7540.7 10489 259.6 11780 593 14719.5 96692.9

2008-09 14241 4008.5 5590.3 4391.8 1303 3298 3802 1559.7 2284 6812.7 11000 241.1 13097 582 15037.3 99182.5

2009-10 10538 4335.9 3599.3 4110.4 1300 3625 3536 1260.6 2243 6960 11236 228.3 10807.1 608 14606.8 89092.9

2010-11 14418 4736.6 3320 6159 1523 3472 4188 1772.1 2696 6558 10837 265.5 12014 545 12332.7 95979.8

2011-12 12895 5399.3 7201 6028.4 1764 3759 4038 1838.2 2806 5812 10542 253.4 14022 599 14853 104322

2012-13 11510 5128 7529.3 6608.8 1541 3976 3364 2775 3057 7295 11374 222.5 14413 581 15023 105241

MEAN 11556.2 4025.9 4907.2 4831.3 1243.3 3232.8 3646.4 1562.9 2521.5 6377.0 10211.7 193.2 11930.4 578.0 14419.3 92111.9

SD 2057.56 713.02 1463.43 1264.46 370.92 463.66 816.89 462.19 390.40 1188.87 856.54 57.54 1518.61 36.13 934.19 9017.74

CV 17.80 17.71 29.82 26.17 29.83 14.34 22.40 29.57 15.48 18.64 8.39 29.78 12.73 6.25 6.48 9.79

CAGR -0.66% 2.07% 2.70% 8.55% 9.85% 3.24% -1.12% 8.66% 3.84% 3.82% 1.81% 2.97% 1.75% -0.56% 1.58% 1.78%





The coefficient of variation shows variability in the production of rice in Indian states. There is more fluctuation in the production

of rice in all states, which increases variability in their production. During the concerned period maximum variation is recorded in

Gujarat (29.83), Bihar (29.82), Rajasthan (29.78) and Madhya Pradesh with (29.57) percent, while low variation is recorded in

Uttarakhand (6.25), West Bengal (6.48) and Punjab (8.39) percent. The variability in production of rice shows that rice production

has not been stable in all states during the concerned period. The variability in the production of rice was high in the states of

Gujarat, Bihar, Rajasthan and Madhya Pradesh due to fluctuation in production of rice. The main reason for the fluctuation in

production of rice was instability in the area used for cultivation of rice in these states. In the state of Bihar area used for

cultivation of rice decreased to 3298 hectares in the year 2012-13 from 3656 thousand hectares in the year 2000-01. In the states

of Gujarat and Madhya Pradesh the main reason for variation in production of rice is increase in the production of rice due to rise

in area used for cultivation and various initiatives taken by the government such as introduction of better crop varieties, intensive

application of inputs, irrigation and price support and procurement operation taken by the government. The production of rice in

Gujarat rose to 1541 thousand tons in the year 2012-13 from 472.7 thousand tons in 2000-01.

Table-5: Production of Rice in Major States

Production in (000 tons)


Table-6: Mean and CV of Rice Production

States Andhra Pradesh Bihar Chhattisgarh Orissa Punjab Uttar Pradesh West Bengal

Mean 11556 4907 4831 6377 10212 11930 14419

CV 18 30 26 19 8 13 6


Convergence in Production of Wheat and Rice

For measuring convergence/divergence in production of wheat and rice in Indian states, we have used method sigma (σ)

convergence. Here we have calculated sigma (σ) convergence to find whether disparity in production of rice and wheat has

decreased or not over time in Indian states.

Sigma (σ) - Convergence for Production of Wheat

In order to test sigma convergence, the coefficient of variation of log of production of wheat for each year across the states has

been computed for the 2000-01 to 2012-13 and the estimated log CV of Wheat production regress on time period t for all states

shows the following results:

CV of production of Wheat = 155.6 – 1.12 t R2 = 0.629

(75.86) (-4.32) F= 18.66

The result of equation shows a negative relationship between CV and time period. The coefficient bears a negative sign and the

value of t statistic for intercept and negative coefficient is statistically significant. The result shows that disparity in the production

of wheat during the period has decreased across states. As poorer states have adopted the HYV technology, improved the

irrigation facilities and used more fertilizers, their production has increased. The production of wheat increased rapidly in MP,

Bihar, Chhattisgarh and Gujarat, while the production of wheat in states like Punjab, Haryana and Uttar Pradesh increased at

constant rate as these states had already utilized the New Technology. Therefore, our hypothesis that inter-states disparity in the

production of wheat has decreased across Indian states is accepted.

STATES 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

AP 12458 11390 7327 8953 9601 11704 11872 13324 14241 10538 14418 12895 11510

BIH 5443 5203 5086 5448 2472 3496 4989 4418 5590 3599 3320 7201 7529

CHAT 2369 5074 2635 5568 4383 5012 5041 5427 4392 4110 6159 6028 6609

ORI 4614 7148 3277 6734 6466 6859 6825 7541 6813 6960 6558 5812 7295

PUN 9154 8816 8880 9656 10437 10193 10138 10489 11000 11236 10837 10542 11374

UP 11679 12856 9595 13019 9556 11134 11124 11780 13097 10807 12014 14022 14413

WB 12428 15257 14389 14662 14885 14511 14746 14720 15037 14607 12333 14853 15023





Table-7: Production of Wheat in Major States

Sources: Database on Indian Economy, RBI Report, 2013-14

Figure-1: Time Trend Coefficient of Variation of Wheat Production


The result is also clear from the figure 4.4 that coefficient of variation has decreased over time across the states. The CV of

production of wheat was 156.6 in the year 2000-01, which declined to 141 percent in the year 2012-13. In 2007-08, CV showed a

rising trend but after 2008, it again started declining. The result explains that the low performing states improved their production

level by introducing new technology, using new high yielding varieties of seeds, improved irrigation facilities and providing

fertilizers to the farmers.

4.5 Sigma (σ) - Convergence for Production of Rice

In order to measure the dispersion in the production of rice we compute the coefficient of variation of production of rice across the

states for each year during the period. The estimated result of CV of production of rice on time t shows the following result:

CV of production of Rice = 92.21 – 0.98 t R2 = 0.558

(44.03) (-3.72) F= 13.89

The estimates of the equation show negative relationship between coefficient of variation and time t. The t value for the intercept

as well as slope coefficient is significant and the value of R2 is high. Therefore, during the concerned period Indian states have

STATES AP ASS BIH

CHA

T GUJ HAR KAR MP MAH ORI PUN RAJ UP UK WB MEAN SD CV

2000-01 8 85.7 4438 80 649 9669 244 4869 948 12.9 15551 5547.1 25168.3 714.6 1058.6 4602.87 7211.95 156.68

2001-02 9 85.3 4391.1 104 1144.7 9437 198.8 6001 1077 10.6 15499 6389 25498 734.8 962 4769.35 7262.08 152.27

2002-03 14 78 4040.6 99 857 9192 147 4923 984 5.8 14175 4878 23612.4 750 887 4309.52 6717.99 155.89

2003-04 7 73 3688.9 109 2036.5 9114 96.2 7365 778 7.5 14489 5875.8 25566.7 745 986 4729.10 7170.69 151.63

2004-05 5 68.1 3263.4 82 1805.5 9058 179 7177 1016 5 14698 5706.6 22513.9 803 842 4481.47 6568.91 146.58

2005-06 9 53.7 3239 91 2473 8857 217 5958 1300 4.5 14493 5865.3 24073.8 645 774 4536.81 6806.33 150.02

2006-07 9 67 3911.4 92 3000 10055 205 7326 1631 5.8 14596 7055.8 25031 801 800 4972.37 7079.04 142.37

2007-08 8 71 4450 99 3838 10236 261 6033 2078 8.7 15720 7125 25679 814 917 5155.82 7271.09 141.03

2008-09 16 54.6 4410 93 2593 10808.2 247 6522 1516 7.4 15733 7287 28554 797 765 5293.47 7949.67 150.18

2009-10 9 63.5 4974.6 93 2739 10869.6 222 7214 1846 6.5 15540 6326.5 28279 831 901 5327.67 7850.71 147.36

2010-11 10 64 4670 127 3854 11040 245 7627 2292 4.7 15828 7214.5 30001 887 842 5647.07 8228.17 145.71

2011-12 8 59 4787.3 133 4100 12685.7 194 10580 1313 2.7 17206.7 9319.6 30292.6 878 884 6162.93 8646.94 140.31

2012-13 7 57 5375.1 133 3135 11117 172 13133 875 2.1 16106.1 8953.5 30301.9 838 907 6074.21 8625.01 141.99

GR -0.011 -0.034 0.016 0.043 0.131 0.012 -0.029 0.083 -0.007 -0.151 0.003 0.040 0.015 0.013 -0.013

lnYt-1 2.08 4.45 8.40 4.38 6.48 9.18 5.50 8.49 6.85 2.56 9.65 8.62 10.13 6.57 6.96





shown σ- convergence in terms of production of rice. The production of rice increased more rapidly in the states like Madhya

Pradesh, Maharashtra, Orissa and other states where the production of rice was low. While the productions of rice in states like

Punjab, West Bengal and Uttar Pradesh increased at a steady rate. This has reduced the disparity in the production among states.

Thus, our hypothesis is accepted that inter-state disparity in the production of rice has decreased in Indian states in the post

liberalization period.

Table-8: Production of Rice in Indian States

Sources: Database on Indian Economy, RBI Report, 2013-14

Figure-2: Time Trend Coefficient of Variation of Rice Production


The estimated coefficient of variation of the production of rice across the states is plotted against time in figure. The coefficient of

variation during the period shows a decreasing trend. The presence of σ- convergence shows that disparity in the production of

rice across the states has decreased over time during the period, that is, the growth rate in the production of rice has increased in

the states where production was low. This has reduced the disparity in the production of rice across states.

STATES AP ASS BIH CHAT GUJ HAR KAR MP MAH ORI PUN RAJ UP UK WB MEAN SD CV

2000-01 12458 3999 5443 2369 473 2695 3847 982 1929 4614 9154 156 11679 622 12428 4856.42 4439.85 91.42

2001-02 11390 3854 5203 5074 1040 2726 3234 1693 2651 7148 8816 180 12856 614 15257 5449.08 4691.60 86.10

2002-03 7327 3738 5086 2635 542 2468 2390 1032 1854 3277 8880 68 9595 483 14389 4250.83 4096.62 96.37

2003-04 8953 3880 5448 5568 1277 2790 2550 1750 2835 6734 9656 165 13019 569 14662 5323.70 4481.56 84.18

2004-05 9601 3471 2472 4383 1238 3023 3547 1169 2164 6466 10437 150 9556 572 14885 4875.63 4360.86 89.44

2005-06 11704 3553 3496 5012 1298 3210 5744 1656 2695 6859 10193 153 11134 590 14511 5453.79 4485.05 82.24

2006-07 11872 2916 4989 5041 1390 3371 3446 1368 2569 6825 10138 170 11124 556 14746 5368.11 4567.21 85.08

2007-08 13324 3319 4418 5427 1474 3613 3717 1462 2996 7541 10489 260 11780 593 14720 5675.43 4760.28 83.88

2008-09 14241 4009 5590 4392 1303 3298 3802 1560 2284 6813 11000 241 13097 582 15037 5816.56 5085.47 87.43

2009-10 10538 4336 3599 4110 1300 3625 3536 1261 2243 6960 11236 228 10807 608 14607 5266.29 4495.31 85.36

2010-11 14418 4737 3320 6159 1523 3472 4188 1772 2696 6558 10837 266 12014 545 12333 5655.79 4621.53 81.71

2011-12 12895 5399 7201 6028 1764 3759 4038 1838 2806 5812 10542 253 14022 599 14853 6120.69 4848.06 79.21

2012-13 11510 5128 7529 6609 1541 3976 3364 2775 3057 7295 11374 223 14413 581 15023 6293.17 4840.49 76.92

GR -0.007 0.021 0.027 0.085 0.098 0.032 -0.011 0.087 0.038 0.038 0.018 0.030 0.018 -0.006 0.016

lnYt-1 9.43 8.29 8.60 7.77 6.16 7.90 8.25 6.89 7.56 8.44 9.12 5.05 9.37 6.43 9.43





Estimation of Extent of Instability

Table-9: Instability in the Production of Wheat in Major States


The instability in the production of wheat during the period 2000-01 to 2012-13 is highest in the states of Andhra Pradesh (55.62

percent), Gujarat (50.93 percent) and Orissa (49.98 percent), while instability has been registered lowest in Punjab (38.54),

Haryana (39.4) and in Uttar Pradesh (39.17) percent. The study shows that there is a relationship between Coppock instability and

Coefficient of variation of production of wheat in major states. The instability is also high in the states where coefficient of

variation is high.

Table-10: Instability in the Production of Rice in Major States


From the table it is observed that instability is high in the states where coefficient of variation is high. The instability in the

production of rice is high in the states of Rajasthan (55.32), Gujarat (53.9), Bihar (53.84) and Chhattisgarh (54.09) percent,

whereas instability is low in Punjab (8.3), West Bengal (6.4) and Uttar Pradesh (12.73) percent. The instability index also

measures variability of production across states. It is analyzed from Coppock instability and coefficient of variation that there is

some relation between two measures of variability, the Coppock instability is high in those states where coefficient of variation is

high and low where coefficient of variation is low.

CONCLUSION

For the development of an economy, the development of agricultural sector is an important pre-condition. However, it is not as

easy to increase the growth rate in agricultural sector in all the regions of a country, as there is a wide variation in the resource

endowment, climate condition, irrigation facilities and other economic conditions. In order to increase the productivity in

agricultural sector specially to increase production of food grains Indian government adopted green revolution technology on a

large scale in the regions where resources were available like in Punjab, Haryana and some parts of Western Uttar Pradesh.

Consequently, growth rate in agriculture or production of food grains increased but it also increased disparity in agricultural

growth in other states or regions.

The variation in the production of wheat is high in the states of Gujarat and Orissa due to high fluctuation in area used for

cultivation of wheat and low variability in states of Punjab, Uttar Pradesh and Haryana. In case of the production of rice,

variability is found in all states but highest variation is found in Gujarat, Madhya Pradesh and Rajasthan and low variation is

found in Punjab, West Bengal and Uttarakhand region. The variability in production has also been measured by Coppock

Instability index, which shows that there is some relationship in coefficient of variation, and instability index. The instability in

production of rice and wheat is high in all those states where coefficient of variation in production is high.

The inter-states disparity in production of rice and wheat crops declined during the period. These results suggest that there has

been a tendency of σ-convergence in agricultural development across the states. The result shows that disparity in production of

wheat and rice has decreased over time. This shows that there is a clear σ-convergence in agricultural development across Indian

states.

REFERENCES

1. Sawant, S. D., & Achutan. (1995, March 25). Agriculture Growth across Crops and Regions. Economic and Political

Weekly, pp A-2 to A13. Mumbai.

2. Somra, S. S. (2000). Regional Disparity in India: An Analytical View. New Delhi: Atlantic Publishers and Distributors.

STATES AP ASS BIH CHAT GUJ HAR KAR MP MAH ORI PUN RAJ UP UK WB

CV 31.8 15.78 14.83 17.6 45.94 10.9 22.79 31.24 35.62 46.46 5.47 19.21 10.05 8.62 9.54

CII 55.62 42.01 40.52 42.52 52.45 39.4 50.93 44.66 48.97 49.98 38.54 42.48 39.17 40.46 41.15

STATES AP ASS BIH CHAT GUJ HAR KAR MP MAH ORI PUN RAJ UP UK WB

CV 17.8 17.71 29.82 26.17 29.83 14.34 22.4 29.57 15.48 18.64 8.39 29.78 12.73 6.25 6.48

CII 45.29 40.93 53.84 54.09 53.94 39.44 47.63 51.71 46.47 51.74 38.43 55.32 44.06 40.82 40.46





3. Das, S. K., & Barua, A. (1996). Regional inequalities, economic growth and liberalization: A study of the Indian

economy. The Journal of Development Studies, 32(3), 364-390.

4. Bhalla, G. S., & Singh, G. (1997). Recent developments in Indian agriculture: A state level analysis. Economic and

Political Weekly, A2-A18.

5. Ahluwalia, Montek S. (2000). Economic Performance of States in Post-Reforms Period. Economic and Political

Weekly, 35(14-26).

6. Ghosh, Madhusudan. (2006, October-December). Regional Convergence in Indian Agriculture. Indian Journal of

Agricultural Economics, 61(4).

7. Dadibhavi, R. K., & Bagalkoti, S. T. (2006). Reforms and Regional Inequality in India. The Indian Economic Journal,

54(2).

8. Chand, Ramesh, & Raju, S. (2007, July- December). Instability in Andhra Pradesh Agriculture- A Disaggregate

Analysis. Agricultural Economics Research Review, 21, 283-288.

9. A., Narayanmurthy. (2007, June 23). Deceleration in Agricultural Growth. Economic and Political Weekly, pp. 2375-

2379. Mumbai.

10. Chand, Ramesh, S., S. Raju, S., Garg, & L., M. Pandey. (2011, June). Instability and Regional Variation in Indian

Agriculture (Policy Paper 26). New Delhi: National Centre for Agricultural Economics and Policy Research (NCAP).

11. Raman, R., & Kumari, R. (2012). Regional Disparity in Agricultural Development: A District Level Analysis for Uttar

Pradesh. Journal of Regional Development and Planning, 1(2), 71-90.

12. Chaterjee, T. (2014, September). Spatial Convergence and Growth in Indian Agriculture (WP-2014-035). Mumbai:

Indira Gandhi Institute of Development and Research.

13. Retrieved from http://farmer.gov.in/imagedefault/pestanddiseasescrops/wheat.pdf

14. Retrieved from http://www.academia.edu/177966/Globalising_Indian_Agriculture_A_shift_in_the_positive_direction

15. Retrieved from http://www.farmingquest.com/wheat/

16. Retrieved from https://ideas.repec.org/p/iim/iimawp/10681.html

*****

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http://farmer.gov.in/imagedefault/pestanddiseasescrops/wheat.pdf

http://www.academia.edu/177966/Globalising_Indian_Agriculture_A_shift_in_the_positive_direction

http://www.farmingquest.com/wheat/

https://ideas.repec.org/p/iim/iimawp/10681.html





GROCERY RETAILING IN INDIAN MARKET

Dr. N. Venkateswaran7

ABSTRACT

Liberalization of the Indian economy and rationalization of business procedures have ensured a high economic growth with a

rapidly expanding base for the manufacturing and hi-end services sectors. Fresh avenues for gainful employment to a

predominantly young and talented population have created high disposable incomes that translate into higher consumption

and thus better opportunities for all verticals of retail to flourish.

The paper examines the changing paradigm in the Indian retailing industry at the turn of the 21st century, mainly driven by

the growth of organized retailing sector and increased personal consumption of customers because of rising incomes,

increased nuclear families and double income families. This paper focuses on emerging paradigms in the grocery retail

industry in selected retailing sectors across India.

The food and grocery industry in India is now worth $383 billion and is expected to touch $1 trillion by 2020. The country's

dynamic retail landscape presents a unique opportunity to investors from across the globe, to use India as a strategic business

hub. However, this modern retail segment grew at the rate of 42.4 percent in 2007, and is expected to maintain a faster

growth rate over the next three years, especially in view of the fact that major global players and Indian corporate houses are

seen entering the fray in a big way. Even at the going rate, organized retail is expected to touch US $57.5 billion (Rs. 2,300

crores) by 2010, constituting roughly 13 percent of the total retail market.

KEYWORDS

Globalization, Database Retailing, Order Processing, Hypermarkets etc.

INTRODUCTION

Since the mid 1990s, India’s grocery sector has started to evolve from a traditional to a modern retail market. Currently, Foreign

Direct Investment (FDI) up to 51% is allowed only in single-brand retail with government approval. However, in the wholesale

cash-and-carry segment, up to 100% FDI is allowed. The Indian government wants to promote FDI at the back-end of retail

activity such as logistics, cold chain and technology so that it also helps traditional retailers. However, FDI in retail continues to

be a politically sensitive issue.

India is the sixth largest grocery market in the world and one of the fastest growing markets for online groceries. According to

industry estimates, of the $500 billion-plus retail market in the country, food and groceries account for the biggest chunk with

around 70% market share. Of this, organized food and groceries is estimated to be around $12 billion and growing at a compound

annual growth rate of around 30%.

By 2016, the Indian grocery market would have overtaken Japan to become the third largest. Meanwhile, India’s online grocery

market, which is estimated to be less than $100 million at present, is expected to be worth billions in the coming years.

The emergence of mall culture coincided with a great interest in the retail sector from foreign institutional investors. In fact, many

malls, high streets and food based retail concepts today are international partnerships. This major step in the evolution of modern,

global retail in India also coincided with the emergence of the internet as more than just a means of communications. Amongst the

first ‘desi’ players in the online retail, space was Indiaplaza.com; the now defunct store was targeted at NRIs and for the duration

of its operation did pretty well for itself.

The Indian retail market, currently estimated at $490 billion, is project to grow at a compounded annual growth rate of 6 per cent

to reach $865 billion by 2023. The traditional channel consists of 'mom-and-pop' stores known as 'kirana' stores, owner-manned

general stores, paan/beedi shops, convenience stores, handcart and pavement vendors, wet markets and employs about 40 to 50

million people. Of the 12 million traditional retail outlets in India, some 7.3 million sell FMCG and 41% of these are in urban

India.

7 Professor, Department of Business Administration, Panimalar Engineering College, Tamil Nadu, India,

[email protected]






The grocery industry consists of food retailers in supermarkets, hypermarkets, cooperatives, discounters, convenience stores,

independent grocers, bakers, butchers, fishmongers and all other retailers of food and drink for off-the-premises consumption. The

industry is relatively fragmented with a few large global players. In facing the fierce competition against foreign giant players, a

relatively large numbers of domestic retailers were consolidated with localized operations. Globalization effects have also

accelerated and altered the cross-border trade, linking new suppliers and retailers across geographical boundaries. The competitive

landscape has made it very hard for local small retailers to manage the market.

Suddenly the brick and mortar shops, saw a definite fall in customer traffic, and faced the first major challenge to what had once

been their almost exclusive purvey. However, as the old adage goes, necessity is the mother of invention, and this challenge, gave

rise to a newer solution, where traditional retail powerhouses could finally meet the young Turks on a more level playing field.

The potential for new entrants in this segment is enormous, particularly in untapped markets like rural and semi-urban areas. Retailing, one of the largest sectors in the global economy, is going through a transition phase in not only India but also the world

over.

Factors driving growth within the Indian grocery retail market include, changing consumer preferences due to increased

disposable income, gradual increasing cosmopolitization of the Indian population due to western influences, and new types of

packaged and convenience foods such as processed meat and meat products requiring refrigerated storage and transportation.

FOOD AND GROCERY MARKET

The food and grocery market in India is currently valued at $236 billion, making it the sixth largest grocery market in the world. It

is expected to grow to $482 billion in 2020, with an overall growth rate of 104 per cent. The modern formats account for just 1 per

cent of the total food and grocery market and are characterized by cash and carry stores, hypermarkets, supermarkets, discount

supermarkets and convenience stores. Some important expectations of customers shopping at modern formats are staff politeness,

freshness of stock and the availability of latest brands.

Online food and grocery retailing outlets have increased from 14 in 2013 to 44 as of September 2014. Growth in online retail use

has been greatest among younger and professional population segments. The number of online grocery retail outlets is expected to

rise in future with total Internet users increasing from 120 million to 213 million in the past year as well as a fall in mobile handset

prices and a rise in smartphone penetration.

The food business in India is largely unorganized adding up to barely Rs. 40,000 Crore, with other large players adding another

50% to that. The All India food consumption is close to Rs. 900,000 Crore, with the total urban consumption being around Rs.

330,000 Crore. This means that aggregate revenues of large food players is currently only 5% of the total Indian market, and

around 15-20% of total urban food consumption. Most food is sold in the local `wet' market, vendors, roadside pushcart sellers or

tiny kirana stores. According to McKinsey report, the share of an Indian household's spending on food is one of the highest in the

world, with 48% of income being spent on food and beverages.

At the heart of the India growth story is its population, the generators of wealth, as both producers and consumers. With the

largest young population in the world - over 890 million people below 45 years of age, India indeed makes a resplendent market.

The country has more English-speaking people than in the whole of Europe taken together. Its 300 million-odd middle class, the

'real' consumers, has attracted the attention of the world, and as the economy grows so does India's middle class. It is estimated

that 70 million Indians earn a salary of over US $19,500 a year, a figure that is set to rise to 140 million by 2011. The number of

effective consumers is expected to swell to over 600 million by this time - sufficient to establish India as one of the largest

consumer markets of the world.

Take FoodWorld, which came in first in the food and grocery-retailing sector. The chain has no plans to venture beyond the

Southern region just yet. FoodWorld current plan is to focus on the Southern markets and achieve saturation. Maybe by 2005, it

could look at the other regions, but there are no plans yet. FoodWorld and Subhiksha indicate that larger companies like HLL and

Nestle will soon begin direct supplies to retailers. Thus, retailer margins are likely to rise, but not at the cost of the manufacturer’s

margins.

Retailers are developing more profitable in-house brands through a large-scale sourcing base. For instance, when FoodWorld got

into the jam business, its major threat was HLL, which had a market share of 70 per cent. Today FoodWorld makes and sells more

jams than HLL. Contrary to popular beliefs, private labels exist not just in staples like flour and rice, but they are also rapidly

growing in categories that are relatively higher value-added, such as detergents.





FoodWorld has now launched its own brand of tea, detergents and surface cleaners. In an era of lower income growth and slowing

consumer demands, increasing competition from new industry players, like retailers, further adds to the problems of FMCG

companies.

But as the retail chains grow, FMCG majors will find it more economical to eliminate the distributor and supply goods directly to

the retailer - that way some distributor margins can be passed on to the retailer. FoodWorld and Subhiksha indicate that larger

companies like HLL and Nestle will soon begin direct supplies to retailers. Thus, retailer margins are likely to rise, but not at the

cost of the manufacturer’s margins.

COFFEE MARKET IN INDIA

Barista entered the Indian coffee retailing market in 2000 and decided to position itself as a lifestyle brand. The company targeted

the premium segment youth, as it realized that it wasn't only coffee that its target segment was looking form, but also for a place

to hang around comfortably, where they could be themselves and do whatever they wanted, such as reading a book, writing a

letter, or simply chilling out. Hence, it recreated the ambience and experience of the typical Italian neighborhood espresso bars in

India, with bright, trendy and comfortable interiors. It promoted a social and interactive environment, where one can play games

like chess and scrabble, read books, listen to music, enjoy arts, surf the Net and sip an Espresso Italiano, or Iced Café Mocha. Fun

posters, message boards and TV screens with music videos, all set the right mood. An open kitchen behind the bar enables one to

watch the coffee actually being made.

GROCERY EMERGING SECTORS

The top five grocery retailers in India are all domestic players. Future Group-owned Future Value Retail (FVR), holds the top

spot. Its Big Bazaar hypermarket format is its most popular and benefited from a revamp last year, which involved a new look,

more billing counters, and a change in software tools for billing. FVR also announced plans last year to merge with Future's

smaller retail group Pantaloons.

Reliance Retail is the second largest grocery retailer in India. It has managed to maintain its position due to the low prices of its

grocery items. Its primary source of profit is from its 'value and other' segment, which comprises its Reliance Fresh, Reliance

Super and Reliance Hyper chains.

Behind these two retailers are Mother Dairy Fruit & Vegetable, Aditya Birla Retail and Spencer's, respectively. That FVR's share

of the total Indian grocery retail market stands at 0.5% demonstrates the dominance of traditional outlets still persists in the

country. Supermarkets witnessed growth of around 16% and 15% in terms of value sales and selling space, respectively.

The traditional grocers, by introducing self-service formats as well as value-added services such as credit and home delivery, have

tried to redefine themselves. However, the boom in retailing has been confined primarily to the urban markets in the country.

GROCERY'S POTENTIAL FOR LARGE PLAYERS

Grocery retail in India is highly fragmented with very little change over the last decade, says the McKinsey report. However, a

number of players are beginning to build significant positions of late, especially in South India, and the industry appears poised

for a marked transformation.

Grocery constitutes over 50 per cent of the Indian retail market and has an annual turnover of over $80 billion. Though it is a huge

market, the organized sector's share is very small. Grocery has three components: branded products, including packaged foods,

soaps and detergents, toiletries and household items; dry unprocessed products including grains and cereals; and fresh grocery

such as fruits and vegetables, meat, dairy and deli products.

In India, supermarkets are likely to be the key format in crowded urban areas. However, there is scope for the development of

larger formats and hypermarkets and warehouse clubs. It is not difficult to see successful large formats like supermarkets or

hypermarkets retailing grocery. The club warehouse format is expected to emerge in the near future but convenience stores are

least likely to succeed in India.

Grocery is the largest retail sector worldwide and the largest global retailers, with sales of $450 billion are in the U.S. The market

is highly concentrated and evolved, with the organized sector accounting for over 70 per cent of the market and the formats

tailored to specified shopping occasions and customer groups.





TECHNOLOGY IMPACT ON INDIAN GROCERY RETAILING

In India, the penetration of internet is still quite low. Only 12% of the population uses the internet, so internet grocery retailing in

India is still extremely small; close to negligible. The other important aspect of retailing relates to technology. It is widely felt that

the key differentiator between the successful and not so successful retailers is primarily in the area of technology. Simultaneously,

it will be technology that will help the organized retailer score over the unorganized players, giving both cost and service

advantages.

Several internet grocery retailers have launched over the past few years and there is a growing presence for consumers in major

cities like Mumbai and Delhi with firms such as Ekstop.com, Localbanya.com, and Eemli.com all having a presence. In addition,

an increase of 24% in internet users last year suggests this could potentially be an increasingly popular channel in the longer term.

However, for now, competition with more traditional stores that offer quick home delivery and credit to neighbourhood

consumers, long delivery times due to poor infrastructure and traffic issues, still present a barrier to growth.

Traditional outlets still account for 80% of sales in India but the retail sector is undergoing a transition with the rise of modern

retailing. High economic growth, increasing incomes, the proliferation of brands, and the introduction and improvements in card

payment technology have all contributed to this growth.

Today, online systems link point-of-sales terminals to the main office where detailed analyses on sales by item, classification,

stores or vendor are carried out online. Besides vendors, the focus of the retailing sector is to develop the link with the consumer.

`Data Warehousing' is an established concept in the advanced nations. With the help of `database retailing', information on

existing and potential customers is tracked. Besides knowing what was purchased and who capture information on softer issues

such as demographics and psychographics.

Current Grocery practice in India adopts a value chain based approach, blending domain knowledge, technology expertise, and

delivery excellence best practices, to provide innovative and customized industry specific solutions. All the company’s

competencies lies in the areas of Order Processing, Product Information Management, Inventory Planning, Item Management,

Pricing, Promotions Execution, Online Retailing & Content Management, POS/Checkout Management, Kiosks deployment, Store

Analytics, Global Data Synchronization, RFID Implementation, Enterprise Security, to name a few.

Though, many retailers are still showing laggardness towards adapting the new technology, leaders are adapting to newer

solutions that are continuously helping the stores in empowering store associates and ensuring faster and cost-effective responses

to operational changes.

GROCERY SHOPPING IN FUTURE

Grocery segment in India is experiencing a boom currently. With many grocery delivery startups being funded, E-

commerce biggies are also entering the segment envisaging a promising future in this area.

The Indian retail market, currently estimated at $490 billion, is project to grow at a compounded annual growth rate of 6

per cent to reach $865 billion by 2023.

Flipkart Announced its own grocery app called Flipkart nearby which will for now will only provide service in

Bangalore. It will also supply personal care and household products.

Amazon has already made its entry in Indian grocery market with its Kirana in March 2015. Snapdeal also tied up with

Godrej’s nature’s basket in January 2015.

In September 2015, Snapdeal made a strategic investment of $36 million in Peppertap to grow its foothold in the

grocery segment. Like Flipkart, Paytm also had announced its dedicated app for groceries, Paytm Zip.

It looks like the Indian grocery market has a promising future ahead with advancement in technology and ease of

mobility.

The growing middle class is an important factor contributing to the growth of retail in India. By 2030, it is estimated

that 91 million households will be ‘middle class’, up from 21 million today.

OPPORTUNITY IN INDIAN RETAIL

Favourable demographic and psychographic changes relating to India’s consumer class, international exposure, availability of

quality retail space, wider availability of products and brand communication are some of the factors that are driving the retail in

India. Over the last few years, many international retailers have entered the Indian market on the strength of rising affluence levels

of the young Indian population along with the heightened awareness of global brands, international shopping experiences and the

increased availability of retail real estate space.





Development of India as a sourcing hub shall further make India as an attractive retail opportunity for the global retailers.

Retailers like Wal-Mart, GAP, Tesco, JC Penney, H&M, Karstadt-Quelle, Sears (Kmart) etc., stepping up their sourcing

requirements from India and moving from third-party buying offices to establishing their own wholly owned / wholly managed

sourcing & buying offices shall further make India an attractive retail opportunity for the global players.

Manufacturers in industries such as FMCG, consumer durables, paints etc., are waking up to the growing clout of the retailers as a

shift in bargaining power from the former to the latter becomes more discernible. Already, a number of manufacturers in India, in

line with trends in developed markets, have set up dedicated units to service the retail channel. Also, instead of viewing retailers

with suspicion, or as a ‘necessary evil’ as was the case earlier, manufacturers are beginning to acknowledge them as channel

members to be partnered with for providing solutions to the end-consumer more effectively.

Though lucrative opportunities exist across product categories, food and grocery, nevertheless, presents the most significant

potential in the Indian context as consumer spending is highest on food. Further, ‘wet groceries’ i.e. fresh fruits and vegetables is

the most promising segment within food and grocery though initially all retailers foraying in to this segment had to face had wide

spread protest from traders, small shop keepers.

The next level of opportunities in terms of product retail expansion lies in categories such as apparel, jewellery and accessories,

consumer durables, catering services and home improvement. These sectors have already witnessed the emergence of organized

formats though more players are expected to join the bandwagon. Some of the niche categories like Leisure and entertainment

(Books, Music and Gifts in particular) offer interesting opportunities for the retail players.

Currently the fashion sector in India commands a lion’s share in the organized retail pie. This is in line with the retail evolution in

other parts of the world, where fashion led the retail development in the early stages of evolution and was followed by other

categories like Food & Grocery, Durables etc. Fashion across lifestyle categories makes up for over 50 per cent of organized retail

and with the kind of retail space growth that India is witnessing we can certainly foresee a very healthy prospect for the fashion

industry.

CONCLUSION

The paper concludes by surmising what lessons other countries' experiences in the supermarket revolution have for India, which is

on the threshold of a major structural change in retailing. The expectations and concerns are high. Accordingly, India must form

its own model of retail development to meet its priorities, learn from challenges that others have faced, and successful examples of

strategies for "competitiveness with inclusiveness" among traditional retailers, wholesaler, and farmers entering an era of rapid

retail transformation and concomitant food system change.

India has an estimated population of 1.24bn and has become one of the most attractive emerging markets. The country's retail

scene is still dominated by smaller, traditional outlets but with incomes rising, Western-style modern chains are growing. Indian

grocers lead that segment, with recent changes to rules on foreign investment so far failing to attract overseas companies.

India is among the largest retail markets in the world. In 2012, the Indian retail market was valued at $500bn and is expected to

grow at a CAGR of over 10% until 2016. Organized retail which was valued at $35bn in 2012, is expected to grow at a CAGR of

over 20%, offering significant potential for retailers across all formats and categories".

Going by the current growth trends, the organized retail in India has indeed gained top speed and is now on the verge of take-off.

However, it is believed that the Indian format of retailing is going to retain its own touch, with numerous small retailers and other

traders being located in the city centers and the large organized retailers coming up in the suburbs of the metropolitan cities. In

other words, small retailers would continue to occupy a niche position as corner-side shops, because with personalized services

and convenient walking distance they are able to provide a special kind of service, which will always be demanded.

Some years down the line, food and grocery stores in India will become dominating trade partners for the food industry, which, in

turn, will be forced to offer special discounts and trade terms for them to get the shelf space in such stores. Also, once established,

in-store label brands will become a real threat to the industry, as manufacturers will have to compete with the store label brands,

which are generally very price-competitive.

Though with excellent potential, India poses a complex situation for the retailers, as this is a country where each state is mini-

country by itself. The demographics of a region vary quite distinctly from others. In order to reach to all classes of society. In

India, organized retail formats should design a comprehensive and prospective business model that offers the quality products and

service at affordable price and generate more socially balanced business.





Thus, with tremendous potential and huge population, India is set for high growth in consumer expenditure. With India's large

‘young’ population and high domestic consumption, the macro trends for the sector look favorable.

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RETAIL INDUSTRY IN INDIA

P. Hima Jagathi8 Dr. S. Rajani9

ABSTRACT

The Indian retail market, which is the fifth largest retail destination globally, has been ranked the second most attractive

emerging market for investment. The retail landscape of the country is changing at a rapid pace with malls and multiplexes

mushrooming in all major cities. Both organized and unorganized retail companies have to work together to ensure better

prospects for the overall retail industry, while generating new benefits for their customers. Nevertheless, the long-term

outlook for the industry is positive, supported by rising incomes, favourable demographics, entry of foreign players, and

increasing urbanization. This paper is attempted to explain the evolution of retail industry, retailing penetration in India and

included SWOT analysis of modern retail outlets.

KEYWORDS

Retail Stores, Organized Sector, Unorganized Sector, SWOT Analysis etc.

INTRODUCTION

The word “Retail” originates from a French – Italian word. Someone, which cuts off or sheds a small piece from something.

Retailing is the set of activities that makes products or services to final consumers for their own personal or household use. It does

this by organizing their availability on a relatively large scale and selling them to customers on a relatively small scale. Retailer is

a person, agent, agency company, or organization who is the instrumental in reaching the goods, merchandise, or services to the

end users or ultimate customer. A Retailer is typically one, who does not affect any significant change in the product he is only the

final stock point who makes products or services available to the consumer whenever require. The retailer offers to a consumer is

easy availabilities of the desired product in the desired sizes at the desired times.

HOW RETAIL DEVELOPED

Early Trade: When man started to cultivate and harvest the land, he would occasionally find himself with a surplus of goods.

Once the needs of his family and local community were met, he would attempt to trade his goods produced elsewhere. Thus

markets were formed. These early efforts to swap goods developed into gatherings that are more formal. When a producer who

had a surplus could not find another producer with suitable products to swap, he may have allowed others to owe him goods. Thus

early credit terms would have been developed. This would have led to symbolic representations of such debts in the form of

valuable items such as gems tones or beads etc., eventually money. The evolution of retail sector had been taken place through

certain stages.

Peddlers and Producers: The retail trade rooted in two groups, the peddlers and producers. Peddlers tended to be opportunistic in

their choice of stock and customer. They would purchase any goods that they thought they could sell for a profit. Producers were

interested selling goods that they had produced.

General Stores: This division continues to this day with some shops specializing in specific areas, reflecting their origins as

outlets for producers such as pacific Concord of Hong Kong others providing a brand mix known as general store. Although

specialist shops are still with us, over time, the general store has increasingly taken on specialist products. Customers have found

this to be more convenient than having to visit many shops. Thus, the term “convenient store” has also been applied to these

shops. As popularity of general stores has grown, so has their size. This combined with the advent of self-service has led to the

super market or superstore.

Early Markets: Over time, producers would have seen value in deliberately over-producing in order to make profit from selling

these goods. Merchants would also have begun to appear. They would travel from village to village. Purchasing these goods and

selling them for a profit. Over time, both producers and merchants would regularly take their goods to one selling place in the

centre of the community. Thus, regular markets appeared. The first shop: Eventually, markets would become permanent fixtures

i.e. shops. These shops along with the logistics required to get the goods to them were, the start of retail trade.

8Associate Professor, MBA Department, Aurora’s P.G. College, Telangana, India, [email protected] 9Director and Professor, Department of Management Studies, Gayatri Vidya Parishad College for P.G. Courses, Andhra Pradesh,

India, [email protected]







ORIGINS OF RETAIL1

There are four great inventions in retail sector:

C.200 BC: Creation of first chain of stores (China)

17th Century: Catalogue - based mail order (Europe)

1852: The first true department store (France)

1915/16: The first self-service store (US)

The creation of First Chain of Stores (China)

The earliest reasonable claim to first retail chain can be found in china over 2200 ago and belongs to a retailer called Lo kass.

There is possibility that roman shopkeepers have a prior claim but only Lo Kass is actually documented. Lo Kass’s innovation, the

thing that allowed him to extend his business, and that he was the first recorded retailer who employ shop managers from outside

of his family.

The First Catalogue - Based Mail Order (Europe)

A mail order catalogue is a publication containing a list of general merchandise from a company. Companies who publish and

operate mail order catalogues are referred to as cataloguers within the industry. Cataloguers buy or manufacture goods then

market those goods to prospects. The Welsh entrepreneur Pryce Pryce-Jones set up the first modern mail order in 1861.

Figure-1: The Cover Page of First Catalog


The First True Department Store (France)

Until 1852, shops were all small and specialist. The first ever-modern department store founded in 1852 by Aristide Boucicault

and wife Marguerite expanded their Parisian drapery store and began sell house wares and bed linen. They called their store le

Bon Marche. The store lunched on the back of innovations such as promise to deliver as far a horse can travel in Paris and the first

time anywhere the store featured prices clearly written on all labels. They are even credited with the invention of modern stock

management, where rotating merchandise and the staging of summer sales, winter sales, blue-cross sales created constant change

and excitement in the store.

Figure-2: The Le Bon Marche store at Paris






The First Self- Service Store (US)

Piggly Wiggly is a supermarket chain operating in the Midwestern and Southern regions of the United States, run by Piggly

Wiggly, LLC, an affiliate of C&S Wholesale Grocers. Its first outlet opened in 1916 in Memphis, Tennessee, which is notable for

having been the first true self-service grocery store, and the originator of various familiar supermarket features such as checkout

stands, individual item price marking and shopping carts.

Figure-3: The first Self-Service Store Piggly Wiggly in US


RETAILING IN INDIA

The Indian retail market, which is the fifth largest retail destination globally, has been ranked the second most attractive emerging

market for investment after Vietnam in the retail sector2. The retail landscape of the country is changing at a rapid pace with malls

and multiplexes mushrooming in all major cities. In fact, having reached a substantial capacity at Tier-1 locations, the organized

retail revolution is now percolating to Tier II and III cities.

Retail has clearly been witnessing a transformation from neighborhood shopping to the concept of malls and family entertainment

centers. Entertainment and experience are becoming integral parts of shopping. Global industry analysts have often confirmed the

country's potential as one of the most attractive emerging retail destinations in the world. This growth has meant an empowerment

of the consumer. The transition from a protected economy to market driven regime is apparent as suspicions regarding

competition from global players dissipate progressively. With domestic industries gaining confidence in their abilities,

competition is no longer the deterrent that it had been.

Indian retail industry is especially owner manned small shops account for more than 90%3. This industry is generally divided into

organized and unorganized retailing:

Organized Retailing: Organized retailing refers to the trading activity undertaken by the licensed retailer, who have

registered for sales tax, income tax etc. these include corporate- backed hyper markets and retail chains and also

privately owned large retail businesses. Various estimates put the share of organized retails to up to 20% by 2020.

Unorganized Retailing: Unorganized retailing refers to the traditional forms of low-cost retailing, example, local kirana

shops, pan/beedi shops, convenience stores, handcarts and street vendors. The growth of unorganized retail sector is

pegged at 6%.

Retailing in India is one of the business enterprises of its economy accounts for 14 155 of its GDP. The Indian retail market,

currently estimated at around US $490 billion, and projected to grow at a compounding annual growth rate (CAGR) of 6 % to

reach US$ 865 billion by 2023.

GROWTH IN INDIAN RETAIL SECTOR

The Indian retail industry has experienced tremendous growth over the last decade with a significant shift towards organized

retailing format and development taking place not just in major cities and metros, but also in Tier II and Tier III cities. The overall

retail market in India is likely to reach Rs 47 trillion (US$ 792.84 billion) by FY 174.





Investment Scenario

The Indian retail industry in the single-brand segment has received Foreign Direct Investment (FDI) equity inflows totaling US$

344.9 million during April 2000–September 2015, according to the Department of Industrial Policies and Promotion (DIPP)5.

With the rising need for consumer goods in different sectors including consumer electronics and home appliances, many

companies have invested in the Indian retail space in the past few months:

Amazon India expanded its logistics footprint three times to more than 2,100 cities and towns in 2015, as Amazon.com

invested more than US$ 700 million in its India operations since July 2014.

Adidas AG, renowned for its Adidas and Reebok sports brands, has become the first foreign sports company to get

government approval to open 100 percent foreign-owned stores in India.

Walmart India plans to add 50 more cash-and-carry stores in India over the next four to five years.

Aeropostale, an American teen fashion retailer, has chosen to enter India over China, and expects India to be among its

top three markets over the next four years with revenue target of Rs 500 crore (US$ 75 million).

Opinio, a hyperlocal delivery start-up, has raised US$ 7 million in a Series-A funding from Gurgaon-based e-commerce

fulfilment service firm Delivery along with investment from Sands Capital and Accel Partners.

Textile major Arvind Limited has announced a partnership with Sephora, owned by LVMH Moet Hennessy Louis

Vuitton, a French luxury conglomerate, in order to enter into the beauty and cosmetics segment.

Mobile wallet company MobiKwik has collaborated with Jabong.com to provide mobile payment services to Jabong’s

customers.

DataWind collaborated with HomeShop18 to expand its retail footprint in the country. Under the partnership,

HomeShop18 and DataWind would jointly launch special sales programmes across broadcast, mobile and internet

media to provide greater access to the latter is tablet range.

FashionAndYou has opened three distribution hubs in Surat, Mumbai and Bengaluru to accelerate deliveries.

Abu Dhabi-based Lulu Group plans to invest Rs 2,500 crore (US$ 375 million) in a fruit and vegetable processing unit,

an integrated meat processing unit, and a modern shopping mall in Hyderabad, Telangana.

Aditya Birla Retail, a part of the US$ 40 billion Aditya Birla Group and the fourth-largest supermarket retailer in the

country, acquired Total hypermarkets owned by Jubilant Retail.

With an aim to strengthen its advertising segment, Flipkart acquired mobile ad network AdiQuity, which has a history

of mobile innovations and valuable experience in the ad space.

US-based Pizza chain Sbarro plans an almost threefold increase in its store count from the current 17 to 50 over the next

two years through multiple business models.

Government Initiatives

The Government of India has taken various initiatives to improve the retail industry in India6:

The Ministry of Urban Development has come out with a Smart National Common Mobility Card (NCMC) model to

enable seamless travel by metros and other transport systems across the country, as well as retail purchases.

IKEA, the world’s largest furniture retailer, bought its first piece of land in India in Hyderabad, the joint capital of

Telangana and Andhra Pradesh, for building a retail store. IKEA’s retail outlets have a standard design and each

location entails an investment of around Rs 500–600 crore (US$ 75–90 million).

The Government of India has accepted the changes proposed by Rajya Sabha select committee to the bill introducing

Goods and Services Tax (GST). Implementation of GST is expected to enable easier movement of goods across the

country, thereby improving retail operations for pan-India retailers.

The Government has approved a proposal to scrap the distinctions among different types of overseas investments by

shifting to a single composite limit, which means portfolio investment up to 49 per cent will not require government

approval nor will it have to comply with sectoral conditions as long as it does not result in a transfer of ownership

and/or control of Indian entities to foreigners. As a result, foreign investments are expected to be increase, especially in

the attractive retail sector.

THE ROAD AHEAD

E-commerce is expanding steadily in the country. Customers have the ever-increasing choice of products at the lowest rates. E-

commerce is probably creating the biggest revolution in the retail industry, and this trend would continue in the years to come.

Retailers should leverage the digital retail channels (e-commerce), which would enable them to spend less money on real estate

while reaching out to more customers in tier-2 and tier-3 cities. India has about one million online retailers – small and large,

which sell their products through various e-commerce portals. The online retail industry in the country touched US$ 12.6 billion

in 20137.





Both organized and unorganized retail companies have to work together to ensure better prospects for the overall retail industry,

while generating new benefits for their customers. Nevertheless, the long-term outlook for the industry is positive, supported by

rising incomes, favourable demographics, entry of foreign players, and increasing urbanization.

Exchange Rate Used - INR 1 = US$ 0.015 as on December 17, 2015

RETAIL BRANDS IN INDIA

There are a large number of outlets of several famous national as well as international retail brands. Day by day, the increasingly

organized lifestyle of Indian people is leading to the setting up of more retail outlets in the country. However, Indian retail market

is said to be a bit unorganized. Much more stress on selling brands is required from retailers. With involvement of some of the

renowned business tycoons like Goenka, Piramal, Raheja and Tata, several supermarkets, stores for office equipment’s, self-

service stores and many such stores have been set up in the country. In a very short period, the Indian retail industry has witnessed

the establishment of numerous retail outlets. In this present competitive market, all the retail brands try hard to compete with each

other in terms of core competencies as well as branding strategies. Characterized by consistency, popularity and value addition,

various retail brands available in India aim at establishing a long-lasting relationship with customers, thus doing one-to-one

marketing.

LIST OF TOP RETAIL BRANDS IN INDIA

The top retail companies/brands in terms of their market capitalization in India are as follows:

Table-1

S. No. Name of the Retail Brand Market Capitalization (Rs. Crore)

1 Future Retail 4,770.27

2 Trent 4,213.76

3 Shoppers Stop 3,252.07

4 Kewal Kiran 2,754.65

5 Pantaloons Fashion & Retail 1,761.22

6 Future Life 1,490.46

7 V-Mart Retail 958.29

8 Prozone Intu 526.48

9 Cantabil Retail 88.99

10 Provogue 65.76

Sources: www.business.mapsofindia.com/top-brands-india/retail

Future Retail is an Indian retail giant with a prodigious presence in the Indian market. The company was

founded under the name 'Manz Wear Private Ltd.' in 1987 and came to be known as 'Pantaloons Fashion

(India) Ltd.' in 1991. Future Retail is the flagship unit of the Future Group headquartered in Mumbai,

Maharashtra. Popular retail supermarket chains like Food Bazaar, Big Bazaar, Food Hall and eZone belong to

the Future Group. The market capitalization of Future Retail was valued at Rs. 4,770.27 crore in May 2015

Trent is the retail wing of the Tata Group that handles some of the most popular retail outlets in India such as

Westside, Landmark and Star Bazaar to name a few. Trent was founded in 1998 and is headquartered in

Mumbai, Maharashtra. The Westside retail chain has become so familiar and popular amongst Indian people

that Trent is often referred to as Westside. In May 2015, the market capitalization of Trent amounted to Rs.

4,213.76 crore.

Shoppers Stop is an Indian retail company founded in 1991. It opened its first store in Andheri, Mumbai, and

Maharashtra. The company is promoted by the K. Raheja Group and operates a chain of retail hypermarket

stores, departmental stores and an online retail store that was launched in 2008. The name ‘Shoppers Stop’ is

famous for both domestic and international brands like Tommy Hilfiger, FCUK, Mustang, United Colors Of

Benetton, GAS, U S Polo, Celio, Levis, Jack and Jones, Haute Curry, Biba, Kraus, Vero Moda, Global Desi,

W, Maybelline, Casio, Titan, Collectabillia, Reebok, Nike and Guess. The market capitalization of Shoppers

Stop was estimated around Rs. 3,252.07 crore in May 2015.

http://www.business.mapsofindia.com/top-brands-india/retail





Kewal Kiran is one of the largest manufacturers of branded apparel in India and was established in 1992. It

started as a manufacture of men's wear for reputed brands. Kewal Kiran, also known as KKCL, is involved

in designing, marketing, manufacturing of casual and semi-formal men's wear and branded jeans. In May

2015, the market capitalization of KKCL amounted to Rs. 2,754.65 crore.

Founded in 1997, Pantaloons Fashion & Retail is one of the most popular and largest clothing retail chains

in India. The company has its headquarters in Mumbai, Maharashtra. Initially, Pantaloons Fashion & Retail

belonged to the Future Group; however, at present, it is owned by Aditya Birla Nuvo Limited. The

Pantaloons stores across the country sell branded clothing and accessories. Pantaloons Fashion & Retail’s

market capitalization was valued at Rs. 1,761.22 crore in May 2015

Future Life is an Indian manufacturer, exporter and supplier of a wide range of bio magnetic products like

bio energy cards, scalar energy pendant, bio magnetic bracelets, home appliances, induction cookers, health

care equipment’s and so on and so forth. It was founded in 2010 and is headquartered in New Delhi. The

market capitalization of Future Life was worth Rs. 1,490.46 in May 2015.

V-Mart Retail is also one of the leading retail clothing chains in India that promises its customers ‘Value for

Money’. The company was established in 2002 and was known as Varin Commercial Private Limited. It is a

complete family fashion retail outlet offering a wide range of products under one roof. The V-Mart retail

outlets cater to all the shopping needs from a family perspective. In May 2015, the market capitalization of

V-Mart Retail amounted to Rs. 958.29 crore.

Prozone Intu is an Indian retail mixed-use real estate major. The businesses of the company include

developing, designing, buying, selling and operating residential and commercial premises and shopping

malls. It operates mainly in two segments; namely, outright sales and leasing. The market capitalization of

Prozone Intu was valued at Rs. 526.48 crore in May 2015.

Cantabil Retail India Limited trades in readymade clothing. Cantabil India provides a whole range of

readymade garments for casual, formal and corporate segments. Lafanso, Cantabil and Kaneston are the

names of the brands under which the company does its business. In May 2015, Cantabil Retail's market

capitalization was worth Rs. 88.99 crore.

Provogue is one of the leading and most popular retail clothing and accessories manufacturers in India. It was

founded in 1997 and is based in Mumbai, Maharashtra. It has grown to be one of the most favorite fashion

outlets for Indian men and women alike as it caters to all their daily styling requirements. Provogue outlets

store latest fashion apparels, shoes, bags and other accessories. The company has added a wide range of

stylish and branded sunglasses, watches and unisex deodorants to its already rich collection of late. The

market capitalization of Provogue amounted to Rs. 65.76 crore in May 2015.

SWOT ANALYSIS OF MODERN RETAIL MODELS

With a growth rate of 25-30% p.a., the Indian retail sector has propelled into a fast-paced growth trajectory. Increased job

creation, high spending power and a pervasive economic climate have provided further momentum to the growth of this sector.

Organized retailing formats (malls) have found an overwhelming acceptance and made in–roads throughout the length and breadth

of the country. Retailing is now being heralded as the next sunrise sector after IT, with the potential to contribute significantly to

the country’s GDP and create new and exciting job opportunities. Now, it would be imperative to examine the SWOT analysis of

organized models, which is key component of Strategic development. The focus of modern models can built on their strengths,

correct their weaknesses and protect themselves against internal vulnerabilities and external threats.

Table-2

Strengths

Mall space supply.

Demography.

Rising affluence levels.

Rising young population with high disposable

income.

Availability of brand and merchandise.

Weaknesses

Real estate growth.

Distribution costs.

Improperly developed malls.

Regulatory aspects.

Lack of skilled personnel.





Opportunities

Rising retail finance and consumer credit leading to

increased affordability.

Changing consumer requirements and lifestyles.

Modern retailing formats providing different value

propositions.

Foreign direct investment.

VAT implementation to reduce cost and complexity.

Threats

Difficulty in acclimatizing to Indian consumer.

Real estate: availability and high cost.

Underdeveloped sully chain.

Policy and taxation hurdles.

Inadequate human resources.

Sources: Sita Mishra. (2008). “New Retail Models In India: Strategic Perspective Analysis”, Journal of Marketing and

Communication, Vol. 4, Issue 2, September-December.

India’s Retailing Boom has acquired further momentum, dynamism and vibrancy with international players experimenting in the

Indian market and the country’s existing giants taking bold innovative steps to woo the consumer8. At the same time, the early

entrants are redefining their strategies to stay competitive and suit the new market landscape. The next few years are liking to

witness rapid growth in the organized retailing sector with several leading international players establishing their presence in India

by adjusting their formats to suit local tastes and buying behavior while regional players have stepped up their defenses and are

striving to gain edge over global players by using their knowledge of local markets. Clearly, the next wave of the retail boom is

upon us.

CONCLUSION

As India’s retail industry aggressively expands itself, great demand for real estate is being created. Further, with the online

medium of retail gaining more and more acceptance, there is a tremendous growth opportunity for retail companies, both domestic

and international. Favourable demographics, increasing urbanization, nuclear families, rising affluence amid consumers, growing

preference for branded products and higher aspirations are other factors, which will drive retail consumption in India. Both

organized and unorganized retail are bound to not only coexist but also achieve rapid and sustained growth in the coming years.

REFERENCES

1. Richard, Hammaond. (2012). Smart Retail (3rd Edition). Pearson’s.

2. A. T. Kearney. (2008). Seventh Annual Global Retail Development Index (GRDI).

3. (2014). KPMG, Indian Retail Next Growth Story, TechSci Research.

4. (2014, April). Sectoral Report.

5. (2015–16). Media Reports, Press Releases, Deloitte report, Department of Industrial Policy and Promotion website,

Union Budget.

6. Retrieved from www.ibef.org/industry/retail-india.

7. (2013). Report by the Internet and Mobile Association of India (IAMAI).

8. Sunita, Sikri, & Dipti, Wadhwa. (2012, September). Growth and Challenges of Retail Industry in India: An Analysis

Asia Pacific Journal of Marketing and Management Review, 1(1).

9. Sita, Mishra. (2008, September-December). New Retail Models in India: Strategic Perspective Analysis. Journal of

Marketing and Communication, 4(2).

10. Retrieved from www.business.mapsofindia.com/top-brands-india/retail

11. Retrieved from www.iamai.in

12. Retrieved from http://www.ibef.org/industry/retail-india.aspx

13. Retrieved from http://www.businesszoom.in/8-top-retail-brands-of-india/

14. Retrieved from http://www.indianresearchjournals.com/pdf/APJMMR/2012/September/1.pdf

http://www.ibef.org/industry/retail-india

http://www.ibef.org/industry/retail-india

http://www.business.mapsofindia.com/top-brands-india/retail

http://www.iamai.in/

http://www.ibef.org/industry/retail-india.aspx

http://www.businesszoom.in/8-top-retail-brands-of-india/

http://www.indianresearchjournals.com/pdf/APJMMR/2012/September/1.pdf





15. Retrieved from http://cii.in/Sectors.aspx?SectorID=S000000033

16. Retrieved from http://www.charsonadvisory.com/retail.php

17. Retrieved from http://iosrjournals.org/iosr-jbm/papers/Vol6-issue3/D0632630.pdf

18. Retrieved from http://shodh.inflibnet.ac.in/jspui/bitstream/123456789/1509/2/synopsis.pdf

19. Retrieved from http://www.proteam.co.in/index.php/industries/retail

20. Retrieved from http://www.proteam.co.in/index.php/retail

21. Retrieved from http://info.shine.com/industry/retail/7.html

22. Retrieved from http://www.yourarticlelibrary.com/marketing/retail-marketing-meaning-and-types-of-major-retail-outle...

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http://cii.in/Sectors.aspx?SectorID=S000000033

http://www.charsonadvisory.com/retail.php

http://iosrjournals.org/iosr-jbm/papers/Vol6-issue3/D0632630.pdf

http://shodh.inflibnet.ac.in/jspui/bitstream/123456789/1509/2/synopsis.pdf

http://www.proteam.co.in/index.php/industries/retail

http://www.proteam.co.in/index.php/retail

http://info.shine.com/industry/retail/7.html

http://www.yourarticlelibrary.com/marketing/retail-marketing-meaning-and-types-of-major-retail-outle...







GREEN GROWTH FOR DEVELOPMENT:

PROSPECTS & CHALLENGES FOR DEVELOPING NATIONS

Dr. Mohd Saif Alam10

ABSTRACT

In the last few years, there has been considerable increase in income in developing countries but this increased economic

growth has not resulted in the inclusive growth and there have been growing income inequalities. To meet the growing

economic and environmental challenges new concept of green growth has been evolved. This can help to accelerate progress

towards sustainable development and poverty reduction through more sustainable use of natural resources, efficiencies in the

use of energy, and valuation of ecosystem services. Green growth will result in inclusive economic growth needed by

developing countries to reduce poverty and improve wellbeing and improved environmental management needed to tackle

resource scarcities and climate change.

The green growth policy recommendations, with their emphasis on low-carbon and high technology, do not obviously tackle

equity problems at either the national or the global level, notably the problem of the lack of inclusion of many poor countries

and people within the informal economy in economic decision-making and in major economic opportunities. Not enough

attention has been paid to the potential of more efficient use of natural capital. In light of the above-discussed facts, this paper

will try to find out the reason for taking up the concept of green growth. Secondly, the progress that developing nations with

respect to inclusive and sustainable development. Thirdly, what objectives will be met by adopting the green growth i.e.

economic, environmental and social? Fourthly, what policies and programmes have been formulated and implemented all

over the world with special reference to developing countries and more specifically by India? Finally, what are the challenges

that developing countries will have to face for achieving inclusive growth and sustainable development?

KEYWORDS

Inclusive Growth, Sustainability, Environmental Management, Inequality etc.

INTRODUCTION

With the degradation of environment and natural resources there has been rising concern all over the world for sustainable growth

and development. Environmental challenges not only results in the degradation of the natural resources but are also viewed as a

threat to human development in the face of the risk that are associated with it. Depletion of natural resources in the inefficient

ways may results in the disbalance of ecosystem and affect the human directly. It is argued that the growth has to be such that not

only results in higher growth but also meet the sustainable needs of the nations.

In view of the economic and environmental challenges, there is a need to promote “Green Growth” as a new source of growth.

This will not only results in the way for sustainable development but will also help the nations to meet the MDG-6 of reducing the

number of poor by 2015. In achieving the green growth, it is expected that developing countries will play a lead role because of its

contribution to the world population.

These investments and policy reforms provide the mechanisms and the financing for the reconfiguration of businesses,

infrastructure and institutions. Such reconfiguration could lead to a higher share of green sectors in GDP, greener jobs, lower

energy and resource-intensive production, lower waste and pollution, and significantly lower greenhouse gas emissions. It can

also assist in the reduction of persistent poverty through targeted wealth transfers, new employment, as well as improved access to

the flow of ecosystem goods and services to the bottom of the economic pyramid.

Theoretical Framework

Protection of environment and sustainable use of natural resources has now been at the centre of the discussion not from the point

of view of the developed economies but also developing economies of the world and India is no exception to it. Unsustainable use

of natural resources often leads to environmental degradation and which in turn have the effect on the health, production, etc.

Developing countries are being affected by increased stress on natural resources and the new policy action to manage

environmental risks, an additional 1 billion people are expected to live in severely water‑stressed areas by 2050, with developing

countries particularly hard hit. Demand for water is projected to grow significantly in developing countries by 2050, while it is

10Post Doctoral Fellow, Department of Commerce, University of Lucknow, Uttar Pradesh, India, [email protected]






expected to decrease in OECD countries. Global terrestrial biodiversity is expected to decline by an additional 10%, leading to a

loss of essential ecosystem services (e.g. to support food production). With growing levels of dangerous emissions from transport

and industry, the global number of premature deaths linked to airborne particulate matter is projected to more than double from

today’s levels to 3.6 million a year by 2050, widely surpassing malaria as a global killer (OECD, 2012a). Most of the

consequences of deadly air pollution will occur in emerging economies like China, India and Indonesia, where premature deaths

from particulate matter are expected to grow from 0.6 million in 2000 and 1.6 million by 2050 (OECD, 2012a). Continuing with

this business as usual growth path could also lock economics into emission intensive development, land use and infrastructure.

The consequence could be a 50% increase in global greenhouse gas emissions by 2050 and an increase in global mean

temperatures of 3‑6°C by the end of the century. Failing to limit climate change will lead to more severe and frequent natural

disasters, and will hit developing countries particularly hard. This will further threaten water security, the livelihoods of poor

people and agricultural productivity. The Intergovernmental Panel on Climate Change (IPCC) warns that projected reductions in

crop yield in some African countries could be as much as 50% by 2020 and crop net revenues could fall by as much as 90% by

2100 due to changes in climate patterns and associated extreme weather events. Environmental vulnerability in developing

countries is heightened by inequality, poverty, and rapid population growth.

Graph-1


Graph-2






Graph-3


OBJECTIVES

In light of the above-discussed facts about the risk that is associated with environment degradation and depletion of natural

resources, this paper will discuss the following:

The progress that developing nations has with respect to inclusive and sustainable development.

What objectives will be met by adopting the green growth i.e. economic, environmental and social?

What policies and programmes have been formulated and implemented all over the world with special reference to

developing countries and more specifically by India?

What are the challenges that developing countries will have to face for achieving inclusive growth and sustainable

development?

GREEN GROWTH AND DEVELOPING NATIONS

Developing countries are the key to achieving global green growth in two major ways Firstly, the potential economic and social

impacts of environmental degradation are particularly important for developing countries They are the most vulnerable to climate

change and tend to be more dependent than advanced economies on the exploitation of natural resources for economic growth In

addition many developing countries face severe economic, social and ecological threats from energy, food and water insecurity to

climate change and extreme weather risks They also face risks from premature deaths due to pollution, poor water quality and

diseases associated with a changing climate.

In order to tackle many of the growth and development challenges mentioned above without compromising future growth and

poverty reduction goals, the concept of green growth has emerged as a new approach to reframe the conventional growth model

and to re-assess many of the investment decisions in meeting energy, agriculture, water needs and the resource demands of

economic growth , defines green growth as a means to foster economic growth and development while ensuring that natural assets

continue to provide the resources and environmental services on which our well-being relies (OECD, 2011b). However,

developing countries will likely interpret green growth in different ways and the concept has generated some concerns.

GREEN GROWTH & DEVELOPING NATIONS: ISSUES

The concept of green growth is generating a diversity of political positions, from enthusiastic to cautious, reflecting variously a

lack of clarity and experience, differential opportunities apparent to specific countries, and the risks of international green growth

policy regimes disfavoring a given country. For example, emerging economies describe the opportunities offered by green growth

in the most enthusiastic terms, and many of them have access to relevant funds and technologies that can realize these

opportunities.





The high initial costs for the transition to green growth appear to be beyond the reach of many developing countries, e.g. solar

power for rural communities Even basic technologies are still lacking in most developing countries, particularly in the fields of

wastewater treatment, household and hazardous waste management, energy efficiency and integrated water resource management

In addition there is a concern that developing countries’ own technologies, including indigenous approaches, will not be able to

compete, and they will need to import technologies from other countries: exchange of scientific and technical knowledge and

removing the barriers constituted by intellectual property rights are of great importance if a genuine transfer of green technologies

is to take place between developed and developing countries

The majority of developing country governments have recently embarked on domestic processes to identify and develop particular

areas of opportunity and comparative advantage These domestic actions include carbon taxes, green energy funds, payment for

ecosystem services schemes, renewable energy initiatives, sustainable public procurement initiatives and natural resource

management initiatives However there are few holistic or system-wide “green growth” policies, strategies and institutional

systems in place Some developing country strategies stand out, including Cambodia’s Green Growth Road Map and Ethiopia’s

National Development Plans For most countries, however, national sustainable development strategies go some way to forming an

integrated green growth policy framework, though green growth has rarely been addressed in mainstream economic, budget and

fiscal policies.

GREEN GROWTH: ADVANTAGES

Economic

Increased and more equitably distributed GDP – production of conventional goods and services.

Increased production of unpriced ecosystem services (or their reduction prevented).

Economic diversification, i.e. improved management of economic risks.

Innovation, access and uptake of green technologies, i.e. improved market confidence.

Environmental

Increased productivity and efficiency of natural resource use.

Natural capital used within ecological limits.

Other types of capital increased through use of non-renewable natural capital.

Reduced adverse environmental impact and improved natural hazard/risk management.

Social

Increased livelihood opportunities, income and/or quality of life, notably of the poor.

Decent jobs that benefit poor people created and sustained.

Enhanced social, human and knowledge capital.

Reduced inequality.

POLICIES FOR GREEN GROWTH IN SPECIFIC ENERGY SECTORS

A window of opportunity now exists to establish policies that will deliver a cleaner and more efficient generation portfolio that

will have significant impact on the energy sector and the environment for the next 40-50 years. However, the many uncertainties

now inherent in the power sector create risks for investors, risks that may lead to under-investment – too little, too late, in the

wrong location and with the wrong technology.

One of the most difficult decisions for investors is the choice of technology, which obviously has implications for the environment

and security of supply. Thus, the choice for investors depends on many factors and is always made with an eye on the potential for

profit. Small changes in the key cost factors, e.g. investment costs, fuel costs, CO2 emission costs and utilization rates, can

significantly change the relative ranking of technologies in terms of total generation costs liveliest over the lifetime of the plant.

Well-functioning markets for electricity, fuel and CO2 emissions provide strong incentives for investors to diversify and to opt for

clean technologies although diversification is, obviously, limited to the technology options actually available. Government

policies play a critical role in keeping as many options open as possible by supporting R&DD of new technologies and through

effective policies and regulation, including those that govern market competition, network access and rates.

Transport is a critical and difficult sector in the transition to green growth. Transport accounts for about 19% of global energy use

and almost one-quarter of energy-related CO2 emissions. With current trends these factors increase by more than 80% by 2050.

Cars and trucks are the biggest contributors, but aviation and shipping are also growing rapidly.





The first priority should be policies for fuel efficiency improvements that employ technologies and practices that are already cost-

effective. A 50% reduction in fuel use per kilometer for average new light- duty vehicles around the world, from incremental

technology improvements and hybridization, is possible by 2030 and is likely to be cost effective even at relatively low oil prices.

Policies are needed both to ensure maximum uptake of efficiency technologies and to translate their benefits into fuel economy

improvement. Fuel economy standards complemented by emissions-based vehicle registration fees can, and in fact already do,

play an important role in OECD countries. Other countries, especially those with robust growth in vehicle use, need to adopt

similar policies. All countries need to update these standards over time, rather than letting measures expire or stagnate. The Global

Fuel Economy Initiative is focused on helping to achieve such outcomes (FIA Foundation, 2011).

Ethanol from sugar cane can already provide low-cost biofuels (depending on feedstock prices). Advanced (second-generation)

biofuels, such as biofuels from waste and residues, ligno-cellulosic ethanol and biodiesel derived from biomass (biomass-to-

liquids), appear to have the best long-term potential to provide sustainable, low life-cycle greenhouse gas fuels, but more RD&D

is needed, as well as policy measures reducing the investment risk associated with commercial-scale plants.

Beyond changes to future vehicles and fuels, shifts in some passenger travel and freight transport to more efficient modes can also

play an important role in greening transport and should be a policy focus. Certainly, from the point of view of cities around the

world, developing in a manner that minimizes reliance on private motorized travel should be a high priority given the strong co-

benefits in terms of reduced traffic congestion, lower pollutant emissions and general livability.

Shifting passenger travel to more efficient modes such as urban rail and advanced bus systems can play an important role. Policies

need to focus on better urban design to cut the need for motorized travel, improving mass transit systems to make them much

more attractive, and improving infrastructure to make it easier to walk and cycle for short trips.

RECOMMENDATIONS

Policy Framework for Greening Growth in Developing Countries

Green growth is understood by many countries to be about mainstreaming inclusive economic development in ways that

incorporate, create and sustain environmental and social values. It entails changing and improving the performance of

government, formal and informal economic actors and consumers and will require systematic adjustments to mainstream policy

and governance systems – in other words, getting economic governance right for sustainable development:

A national green growth plan to create enabling conditions;

Green growth mainstreaming mechanisms to ensure opportunities are explored through existing economic activities;

Green growth policy instruments to tap specific opportunities within spatial and resource systems;

Government expenditure to shift away from activities that waste, overuse or degrade environmental assets – because

such a “disabling” environment makes green investments less competitive;

More effective enforcement of legislation, in part as a driver of green investment – because weak enforcement reduces

long-term investor and market confidence and gives little incentive for most businesses to improve;

Shifting science, research, educational and training priorities to support the transition to a green economy – because new

knowledge and skills will be needed for government decision makers, professionals and workers, down to local levels;

the structural employment and institutional changes required may also warrant support for the fair transitional costs of

organisations and their employees;

Resource and land rights regimes that safeguard the interests of those with informal rights – because too many regimes

favour powerful actors who are able to claim rights and/or emphasize technical efficiency of resource allocation, and do

not support inclusion and equity for those who have a special dependence on the resource in question; this is especially

critical in assuring rights to water or traditional lands;

Facilitating businesses to fully integrate sustainability and equity concerns, through provision of information and

coordinating research on potential opportunities, especially to adopt best available technologies and meet standards,

enabling technology access – through reducing trade barriers where necessary, providing finance – or public private

partnerships that share risk and cover upfront costs, and improving accountability – widening reporting requirements.





Creating enabling conditions for psychological and behaviour change – framing green growth as a social goal,

narrowing choices towards greener approaches, “nudge” techniques to help people make better decisions on those

choices, and tailoring information to match with stakeholder incentives and approaches to learning;

REFERENCES

1. (2011). Towards Green Growth. Paris: OECD.

2. (2012). Policies and Practices for Low-Carbon Green Growth in Asia: Highlights. ADB, Manila and ADBI, Tokyo.

Retrieved from www.adb.org/publications/policies-and-practices-low-carbon-green-growthasia-highlights.

3. Bowen, A., & Fankhauser, S. (2011). The green growth narrative: Paradigm shift or just spin? Global Environmental

Change, 21(4), 1157–1159.

4. (1987). Report of the World Commission on Environment and Development: Our Common Future. UN: New York.

5. (2012). Inclusive Green Growth: The Pathway to Sustainable Development. Washington D.C.: World Bank.

6. (2012). Green Growth, Resources and Resilience: Environmental Sustainability in Asia and the Pacific. Bangkok:

ESCAP, ADB and UNEP Regional Office for Asia and the Pacific.

7. Daly, H. E. (1990). Toward some operational principles of sustainable development. Ecological Economics, 2(1), 1–6.

8. Jackson, T. (2009). Prosperity without Growth: Economics for a Finite Planet. London: Earthscan.

9. (2001). Globalization, Growth and Poverty: Building an Inclusive World Economy. Washington D.C.: World Bank.

New York: Oxford University Press.

10. Adams, R. H. (2004) Economic Growth, Inequality and Poverty: Estimating the Growth Elasticity of Poverty. World

Development, 32(12), 1989–2014.

11. Collier, P. (2008). The Bottom Billion: Why the Poorest Countries are failing and what can be done about It. Oxford:

Oxford University Press.

12. Retrieved from http://img.scoop.co.nz/media/pdfs/1210/CTA%20Briefing%20Vanuatu.pdf

13. Retrieved from http://oecdinsights.org/2012/06/12/not-just-for-the-rich-green-growth-and-developing-countries/

14. Retrieved from https://www.researchgate.net/profile/Tadeusz_Skoczkowski/publications

15. Retrieved from http://www.greengrowthknowledge.org/about-us

16. Retrieved from http://www.oecd.org/general/whatisgreengrowthandhowcanithelpdeliversustainabledevelopment.htm

17. Retrieved from http://www.cccep.ac.uk/publication/low-carbon-green-growth-in-asia-policies-and-practices/

*****

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http://img.scoop.co.nz/media/pdfs/1210/CTA%20Briefing%20Vanuatu.pdf

http://oecdinsights.org/2012/06/12/not-just-for-the-rich-green-growth-and-developing-countries/

https://www.researchgate.net/profile/Tadeusz_Skoczkowski/publications

http://www.greengrowthknowledge.org/about-us

http://www.oecd.org/general/whatisgreengrowthandhowcanithelpdeliversustainabledevelopment.htm

http://www.cccep.ac.uk/publication/low-carbon-green-growth-in-asia-policies-and-practices/







VISUAL MERCHANDISING: A KEY ELEMENT IN RETAIL INDUSTRY

Dr. Mrinal Verma11

ABSTRACT

With the upcoming mall culture & paradigm shift in organized retail sector, a new concept of Visual Merchandising is also

coming into picture. Visual merchandising is one of the ultimate phases in trying to place out a retail store in a manner that

the potential customers will find eye-catching and pleasing and it should pursue and replicate the principles that strengthen

the store’s image. It is the way one exhibit products for sale' in the most striking manner with the end purpose of making a

sale. "If it does not sell, it is not visual merchandising."

Especially in today’s challenging economy, retails store managers may avoid designers / visual merchandisers because they

fear uncontrollable costs. However, in reality, visual merchandisers can help cut down by avoiding costly error. With

guidance of a professional, retailer can eliminate mistakes, saving time and money. It is important to understand that the

visual merchandiser is there, not to impose ideas, but to help clients articulate their own personal style.

KEYWORDS

Visual Merchandising, Retail etc.

INTRODUCTION

Visual Merchandising is the activity of promoting the sale of goods, especially by their presentation in retail outlets. This

includes combining product, environment, and space into a stimulating and engaging display to encourage the sale of a product or

service.

Visual merchandisers in creating displays, including colour, lighting, space, product information, sensory inputs such as smell,

touch, and sound as well as technologies such as digital displays and interactive installations, can use many elements.

The main principle of visual merchandising is that it is intended to increase sales.

Visual merchandising is one of the final stages in trying to set out a store in a way that customers will find attractive and appealing

and it should follow and reflect the principles that underpin the store’s image. Visual merchandising is the way one displays

'goods for sale' in the most attractive manner with the end purpose of making a sale. "If it does not sell, it is not visual

merchandising."

Especially in today’s challenging economy, people may avoid designers/ visual merchandisers because they fear unmanageable

costs. However, in reality, visual merchandisers can help economize by avoiding costly mistakes. With guidance of a professional,

retailer can eliminate errors, saving time and money. It is important to understand that the visual merchandiser is there, not to

impose ideas, but to help clients articulate their own personal style.

Visual merchandising is the art of implementing effective design ideas to increase store traffic and sales volume. It is an art and

science of displaying merchandise to enable maximum sale. It is a tool to achieve sales and targets, a tool to enhance merchandise

on the floor, and a mechanism to communicate to a customer and influence his decision to buy. It uses season based displays to

introduce new arrivals to customers, and thus increase conversions through a planned and systematic approach by displaying

stocks available.

Recently visual merchandising has gained in importance as a quick and cost effective way to revamp retail stores.

Features

Specific shop facings attract different customer segments,

Post modern style attracts younger consumer groups with higher incomes,

Traditional and basic style attracts purists,

Luxury presentation style attracts consumer groups with higher incomes,

Colorful attractive presentation style attracts a broad spectrum of quality oriented consumer groups,

11Assistant Professor, Krishna Institute of Engineering & Technology, Uttar Pradesh, India, [email protected]






Elegant but distanced presentation style attracts modern lifestyle oriented consumer groups,

Simple presentation style attracts altruistic consumer groups.

Purpose

Retail professionals display to make the shopping experience more comfortable, convenient and customer friendly by:

Making it easier for the shopper to locate the desired category and merchandise.

Making it easier for the shopper to self-select.

Making it possible for the shopper to co-ordinate & accessorize.

Providing information on sizes, colors & prices.

Informing about the latest fashion trends by highlighting them at strategic locations.

Merchandise presentation refers to most basic ways of presenting merchandise in an orderly, understandable, ’easy to shop’ and

‘find the product’ format.

Typical Activities

Conducting research based on lifestyle concepts and trends, as well as store and/or regional attributes,

Sketching designs,

Developing floor plans,

Sourcing materials,

Maximizing the space and layout of the store,

Using available space to the best advantage,

Dressing mannequins and making use of creative lighting for window displays,

Preparing for promotional events and dismantling displays at the end of promotional periods,

Giving feedback to head office and the other teams (such as buyers),

Visiting other stores in the area, working with in-store sales staff and helping to develop their understanding of

presentation,

Setting up a 'model' store according to the company's latest design directives photographing the store's windows, each

wall and every display, in order to create a visual merchandising pack to send out to other stores (to ensure that all stores

are consistent with the company brand and image),

Implementing the designs and plans created by the visual merchandising manager and the creative director, which may

involve manual work including lifting, carrying and climbing ladders.

Role of Visual Merchandisers in Retailing

Visual Merchandisers play a major role in enhancing sales and the customer experience. Depending on where they work, visual

merchandisers’ duties include:

Planning the VM theme and creating displays.

Arranging props for displays.

Arranging display fixtures and lighting.

Setting up stores before openings.

Working with floor plans and store requirements.

Training personnel on the sales floor to create displays.

Organizing merchandising units such as racks and shelves.

Important Attributes for Preferred Shopping Places

Pleasant atmosphere,

Frequent special price offers,

Able to touch products,

Friendly sales people,

Shopping fast and effective,

Broad assortment,

No stress factors,

Extension offers,





Low distance to shop,

Enjoy shopping,

Sufficient parking areas.

Critical Competition Areas for Retailers

Price image: too expensive,

Less favored locations,

Shopping slow and less effective,

Less shopping comfort,

Needed conventional items has to be bought on separate markets?

Potentials for Retailers

Better appearance,

Better care of assortment,

Broader assortment,

Better possibilities to position with regional messages,

Sales people are able to steer purchase activities,

More trustful in consumer’s eyes.

LITERATURE REVIEW

Visual Merchandising is the art of displaying merchandise in a manner that is appealing to the eyes of the customer. It sets the

context of the merchandise in an aesthetically pleasing fashion, presenting them in a way that would convert the window shoppers

into prospects and ultimately buyers of the product. A creative and talented retailer can use this upcoming art to breathe in new

life into his store products.

Jerry Gelsomino wrote in his article in Babyshop Magazine.com, The Business Magazine for Independent Juvenile Product

Retailers that Great store presentation and product merchandising is like a good book. It has an alluring cover to entice, an

interesting first chapter to tell the reader they have made the right choice, and a satisfying conclusion to get the audience to want

more. The tools used to achieve these attributes are based on creating the most satisfying experience for the shopper, turning

browsers into buyers.

Gibson G. Vedamani stated that Visual Merchandising enhances the shopping experience by providing the right ambience, besides

creating an image of the store in the minds of the customers.

OBJECTIVE OF STUDY

To study the effect of visual merchandising in retail.

To study the factors of visual merchandising influencing the shopping style of the customers.

To study the extent of effect of visual merchandising in different categories of retail.

SCOPE

The scope of this research work is for the Retailers & their potential clients.

RATIONALE OF STUDY

The study has been conducted to find out the effect of visual merchandising in the retail sector to see how the customers have an

impact of this concept. The study also focuses on the factors of visual merchandising that affect the shopping style of the

customers.

METHODOLOGY OF RESEARCH

Research Design: Descriptive

Sampling Design: Convenient Sampling

Research Instrument: Structured questionnaire





Data Sources: Primary & Secondary

Secondary: Magazines, Journals, Books and Internet

Primary: Customers feedback from market survey

Mode of Survey: Personal Interview

Sample Size: 100

DATA ANALYSIS AND INTERPRETATION

Graph-1: Weightage of Factors Effecting Shopping Style


It clearly shows that ambience plays a very vital role in shopping.

Graph-2: Role of Visual Merchandising for Commodity


The calculated means from the responses from the buyers clearly shows that apparel section demands the maximum of Visual

Merchandising. At the same time electronic goods requires least. Customers are not very attentive towards the Visuals in the

electronic goods section.

Table-1: Ranking of the Preferences for these Factors from 1- 5 for the Reasons that a Customer will Visit a Retail Outlet

Factors Variables

Prestige / Status Var1

Promotion / Advertisement Var2

Value for money Var3

Satisfaction Var4

Fun Var5


10

12

4

8

20

1423

15

10

Display Color

Angles Motion

Simplicity Repetition

Décor Ambience

Lighting Cleanliness

2.8752.625

2.25 2.125

1.375 1.25

0.625 0.5

00.5

11.5

22.5

33.5





Factor Analysis

Table-2: Correlation Matrix (a)

VAR00001 VAR00002 VAR00003 VAR00004 VAR00005

Correlation VAR00001 1.000 -.899 -1.000 1.000 .566

VAR00002 -.899 1.000 .899 -.899 -.869

VAR00003 -1.000 .899 1.000 -1.000 -.566

VAR00004 1.000 -.899 -1.000 1.000 .566

VAR00005 .566 -.869 -.566 .566 1.000


Table-3: Communalities

Initial Extraction

VAR00001 1.000 .942

VAR00002 1.000 .957

VAR00003 1.000 .942

VAR00004 1.000 .942

VAR00005 1.000 .559

Note: Extraction Method: Principal Component Analysis


Correlations

Table-4: Descriptive Statistics

Mean Std. Deviation N

VAR00001 1.4706 .50160 100

VAR00002 3.7941 .83652 100

VAR00003 1.5294 .50160 100

VAR00004 3.4706 .50160 100

VAR00005 4.7353 .44336 100


Table-5: Correlations

VAR00001 VAR00002 VAR00003 VAR00004 VAR00005

VAR00001 Pearson Correlation 1 -.899(**) -1.000(**) 1.000(**) .566(**)

Sig. (2-tailed) .000 .000 .000 .000

Sum of Squares and Cross-products 25.412 -38.118 -25.412 25.412 12.706

Covariance .252 -.377 -.252 .252 .126

N 102 102 102 102 102

VAR00002 Pearson Correlation -.899(**) 1 .899(**) -.899(**) -.869(**)

Sig. (2-tailed) .000 .000 .000 .000

Sum of Squares and Cross-products -38.118 70.676 38.118 -38.118 -32.559

Covariance -.377 .700 .377 -.377 -.322

N 102 102 102 102 102

VAR00003 Pearson Correlation -1.000(**) .899(**) 1 -1.000(**) -.566(**)

Sig. (2-tailed) .000 .000 .000 .000

Sum of Squares and Cross-products -25.412 38.118 25.412 -25.412 -12.706

Covariance -.252 .377 .252 -.252 -.126

N 102 102 102 102 102

VAR00004 Pearson Correlation 1.000(**) -.899(**) -1.000(**) 1 .566(**)

Sig. (2-tailed) .000 .000 .000 .000


Covariance .252 -.377 -.252 .252 .126

N 102 102 102 102 102

VAR00005 Pearson Correlation .566(**) -.869(**) -.566(**) .566(**) 1





Sig. (2-tailed) .000 .000 .000 .000


Covariance .126 -.322 -.126 .126 .197

N 102 102 102 102 102

Note: ** Correlation is significant at the 0.01 level (2-tailed).


Outcome

The study shows that the respondents give most emphasis on Ambience & later on lighting, color, cleanliness etc. They are least

interested in repetition, simplicity, angles etc. Visual merchandising plays a vital role in their buying behavior. The major chunk

responded that, they go for Apparels on top, accessories on second, followed by jewellery & footwear & least for groceries &

electronic gadgets.

Using the factor analysis, we can infer that there are two factors, which affect the customer to visit any retail store. They are:

variable 2, i.e. Promotion / Advertising & the other is Variable 3 i.e. value for money. They are the major contributor for any retail

outlet to attract the customer, in terms of visual merchandising. Other factors like prestige, fun etc., are secondary and ranked after

the above two, as per the survey & the responses by the by the sample population.

Using the correlation analysis, it can be assumed from the research & survey, it shows an inclination of the respondent towards the

variable two i.e. Promotion & Advertising which is affecting them to shop in retail store. It means if we can rank them in

accordance with the output table, we can say that promotion is on top, second is Value for money & last is fun, taking into

consideration the above mentioned five factors.

To be successful in the retail management, companies are more focusing into the visual merchandising the entire business adopted

based on the dynamics of the market trends. As the market scenario has to be taken into account, strategies have to be moved from

the emerging to the emerged; a change in approach is necessary. In order to have good market performance, customer awareness

about Visual Merchandising should be enhanced.

Visual merchandising is the way one displays 'goods for sale' in the most attractive manner with the end purpose of making a sale.

"If it does not sell, it is not visual merchandising. “It is an upcoming choice by the retailer as well as considered by the consumers.

The consumers get attracted by these kinds of visual used by the retailers like color, display, ambience, lightning, cleanliness,

décor, motion, angle etc.

The influence of Visual Merchandising affects all categories of retail store positively.

The research shows that apparels, accessories, jewellery, & footwear are the main category, which is mostly affected, & attracting

the customers to the stores, because of good Visuals Merchandising & its factors.

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A STUDY ON ROLE OF GRAMA PANCHAYATHS IN VILLAGE DEVELOPMENT

IN MANGALORE TALUK: RESEARCH AGENDA

Dr. Parameshwara12

ABSTRACT

Rural development has been massively a government supported process rather than the people-led process in India. To

formulate and implement rural development programs an appropriate institutional structure is required. The establishment of

Panchayat Raj Institution (PRIs) in India met this need. Further, the PRIs, being local self-governing bodies ensure, the

opportunity for people's participation and involvement in the formulation and implementation of rural development programs.

Thus, the PRIs are entrusted with the task of promoting rural development in India. The implementation of rural development

programs through the Panchayat Raj institutions has to make drastic change in the socio economic conditions of the rural

people. The implementation of rural development programs will affect even the social and political affairs of the people of the

selected area. In the economic front of the rural development, programs have to create an improvement in economic position

of the villages. Government of India and government of Karnataka have been spending crores of rupees for the overall

development of the villages. The study is needed for evaluating the role of panchayat and the impact of the same on the

development of study area.

KEYWORDS

Panchayat’s, Rural Development, GOI etc.

INTRODUCTION

The Panchayats are expected to play an important role in rural development in India, particularly after independence. Plan

documents of both the central and state governments and various committees have emphasized the importance of these bodies in

the polity. Five-year plans, especially the second five-year plan, laid special emphasis on the role of Panchayats in rural

developments. Second five-year plan envisaged a panchayat as responsible for village development keeping transformation of

social and economic life of rural areas as its goal of development. It says that, the rural progress depends entirely on the existence

of an active organization in the village, which can bring all the people, including the weaker sections, in to common programmes

to be carried out with the assistance of administration. To achieve this objective the second Five-year Plan entailed the Panchayats

to perform civic, developmental, land management, land reform and judicial functions. Subsequent plans and policy

pronouncements of national leader to emphasized the role of Panchayats in village development

The role of panchayat Raj institutions as instruments of rural reconstruction and development needs no emphasis. They have been

reorganized with wider powers and financial resources not merely as institutions of political participation, but institutions of social

and economic development. Panchayat Raj has come to be associated with two broad images. First, it is a government by itself

and second it is an agency of the state government. In the integrated exercise of planning for social and economic development,

co-ordinate roles, the present set up is a three-tier representative structure of government where the administrators, elected leaders

and local population participate in the developmental effort. In fact the elected representatives play the key role in the decision

making process, leaders are regarded as facilities of the process of development. Since the emphasis of rural development policies

is bringing about people's participation in the development programmes, it is possible to achieve this through the leaders

Rural development has been massively a government supported process rather than the people-led process in India. To formulate

and implement rural development programs an appropriate institutional structure is required. This need was met by the

establishment of Panchayat Raj Institution (PRIs) in India. Further, the PRIs, being local self-governing bodies ensure, the

opportunity for people's participation and involvement in the formulation and implementation of rural development programs.

Thus, the PRIs are entrusted with the task of promoting rural development in India. Since Independence, greater emphasis has

been laid on the social, economic and planning policy of our country for creating an appropriate rural, economic and social

infrastructure and promoting overall development. The planning policy of our county accorded the highest priority to agriculture

and rural development. The measures envisaged from first five-year plan had considerable bearing for the growth of rural

economy. The first five-year plan laid down that "development of agriculture, based on the utilization of man power resources of

the countryside and the maximum use of local resources, holds a key to the rapid development of the country". In the words of

Committee on Plan Projects, "so long as we do not discover or create a representative and democratic institution which will supply

the local interest, supervision and care necessary to ensure that expenditure of money upon local objects conforms with the needs

and wishes of the locality, invest it with never be able to evoke local interest and excite local initiative in the field of

12Assistant Professor, Department of Commerce, Mangalore University, Karnataka, India, [email protected]






development" (Committee on Plan Projects Report, 1957, Vol. I, p-5) and the team recommended a three-tier model of Panchayat

Raj to serve as instrument of rural development in India. Panchayats have been in existence for a long period. The present set-up

clearly marks itself off from the past in respect of powers, functions and financial resources. The four main aspects of the present

system are (1) democratization of the constitution and universal establishment of Panchayats. (ii) transfer of more powers from the

state to these bodies, (iii) expansion of the scope of and transfer of more functions to the panchayats in regard to agriculture and

allied activities, health and welfare and education and (iv) strengthening of the resource position of these bodies. (Muttayya.B.C.,

1979, p-1).

Table-1: Total Villages in Mangalore Taluk and Population

S. No. Village Population S. No. Village Population S. No. Village Population

1 Adyapady 2,089 26 Kellaputhige 1,364 51 Padumarnadu 4,553

2 Aikala 2,332 27 Kemral 2,813 52 Padupanamboor 1,326

3 Amblamogru 4,941 28 Kilenjur 658 53 Paduperar 3,905

4 Athikari Bettu 2,219 29 Killenjaru 3,225 54 Paladka 2,543

5 Attur 1,478 30 Kilpady 3,389 55 Panapila 1,625

6 Badagayedapadavu 4,220 31 Kinnya 4,788 56 Panja 418

7 Badagayekkaru 2,467 32 Koikude 2,029 57 Pavanje 1,737

8 Badagumijaru 3,430 33 Kolavooru 2,491 58 Pavoor 5,987

9 Balkunje 1,551 34 Kollur 778 59 Permude 2,242

10 Bellairu 2,141 35 Kompadavu 2,582 60 Puchhamoguru 2,108

11 Beluvai 10,220 36 Kondemula 2,378 61 Puthige 8,279

12 Boliyar 5,753 37 Madya 1,624 62 Sasihithlu 2,228

13 Daregudde 1,804 38 Malavoor 3,468 63 Shimanthur 1,607

14 Delanthabettu 1,464 39 Mallur 3,601 64 Shirthadi 2,655

15 Elathur 889 40 Mantrady 1,744 65 Surinje 3,098

16 Elinje 1,951 41 Menna Bettu 4,374 66 Tankaulipady 2,188

17 Ervuailu 2,931 42 Mogaru 2,797 67 Tenkamijar 5,050

18 Haleangady 4,563 43 Moodukonaje 1,929 68 Tenkayedapadavu 6,228

19 Hosabettu 2,260 44 Moodumarnadu 2,611 69 Tenkayekkar 3,445

20 Kadandale 3,760 45 Muchur 2,294 70 Thodaru 3,031

21 Kalavar 1,115 46 Muthuru 1,875 71 Thokur- 2,898

22 Kallamundkooru 4,065 47 Nadugodu 1,454 72 Ulaibettu 4,162

23 Kandavara 3,347 48 Nellikaru 3,030 73 Ulipady 1,032

24 Karnire 920 49 Niddodi 2,120 74 Valpadi 3,520

25 Kavathar 1,529 50 Padukonaje 1,313

Sources: (2011 Censes)

Dakshina Kannada is a coastal district in the state of Karnataka in India. Sheltered by the Western Ghats on the east and

surrounded by the Arabian Sea on the west, Dakshina Kannada receives abundant rainfall during the monsoon. It is bordered by

Udupi District to the north, Chikkamagaluru district to the northeast, Hassan District to the east, Kodagu to the southeast, and

Kasaragod District in Kerala to the south. Mangalore city is the district headquarters of Dakshina Kannada. The district is divided

into five taluks namely Mangalore, Bantwal, Puttur, Sullia, and Belthangady. It used to include 4 northern taluks, Udupi,

Kundapur, Karkalaand Byndoor, but these were separated in August 1997 to form Udupi district. Dakshina Kannada, Udupi and

Kasaragod Taluk are often called Tulu Nadu, as Tulu is the majority language in the region.


Bhargava. B. S., and Venkitakrislman (l997) in their study “Panchayati Raj Movement: An Analysis of its Phases” gives wider

dimension for the concept of participation. Peoples’ participation at local level tends to be confined to receiving benefits by those

for whom they are meant or stipulated and in other stages; the participatory thrust in the conscious act of restructuring the society

is either absent or nominal. They observed that a major shift in the strategies has been occurred around 1970, in view of the fact

that benefits or gains of development had not reached the weaker sections, but cornered by the well-off sections of rural

community. The efforts for proper institution building and to change the “value system” had been the common strategies, thus

apparently resulted in the experiment of new form of local self-governance with a democratic power mechanism and development

mechanism. Sundaram K. V. (1997), community participation takes three forms such as mobilization, mediation and

empowerment. In the first instant mobilization is seen as facilitator or a desired plan output. The concept, mediation refers to the

role of peoples’ representatives or institutions that should act as the mediators between the government and the people. The

http://www.census2011.co.in/data/village/617462-padumarnadu-karnataka.html

http://www.census2011.co.in/data/village/617434-padupanamboor-karnataka.html

http://www.census2011.co.in/data/village/617481-paduperar-karnataka.html

http://www.census2011.co.in/data/village/617451-paladka-karnataka.html

http://www.census2011.co.in/data/village/617466-panapila-karnataka.html

http://www.census2011.co.in/data/village/617445-panja-karnataka.html

http://www.census2011.co.in/data/village/617436-pavanje-karnataka.html

http://www.census2011.co.in/data/village/617496-pavoor-karnataka.html

http://www.census2011.co.in/data/village/617478-permude-karnataka.html

http://www.census2011.co.in/data/village/617458-puchhamoguru-karnataka.html

http://www.census2011.co.in/data/village/617460-puthige-karnataka.html

http://www.census2011.co.in/data/village/617435-sasihithlu-karnataka.html

http://www.census2011.co.in/data/village/617431-shimanthur-karnataka.html

http://www.census2011.co.in/data/village/617471-shirthadi-karnataka.html

http://www.census2011.co.in/data/village/617474-surinje-karnataka.html

http://www.census2011.co.in/data/village/617492-tankaulipady-karnataka.html

http://www.census2011.co.in/data/village/617455-tenkamijar-karnataka.html

http://www.census2011.co.in/data/village/617486-tenkayedapadavu-karnataka.html

http://www.census2011.co.in/data/village/617477-tenkayekkar-karnataka.html

http://www.census2011.co.in/data/village/617456-thodaru-karnataka.html

http://www.census2011.co.in/data/village/617438-thokur--karnataka.html

http://www.census2011.co.in/data/village/617493-ulaibettu-karnataka.html

http://www.census2011.co.in/data/village/617428-ulipady-karnataka.html

http://www.census2011.co.in/data/village/617468-valpadi-karnataka.html





government and people are involved in the task of planning and implementation and the action should be done through a

dialectical process. The concept “empowerment” impregnates a wider meaning that people have to capacitate and their institutions

built up and is strengthened and this is considered the highest form of participation. Empowerment imbues the Communities’

autonomy to decide the goals, plans, programmes and projects affecting their development. Autonomy of mobilizing and

controlling their own resources urges the former. Chadha. K. M (1996) observed that rural poverty is inextricably linked up with

rural productivity and unemployment including under employment. The study asserted that participation of rural poor could be

guaranteed by way of active co-operative institutions. Cooperation is aimed at promoting self-reliance, self-help and self-

governance among members, implying equitable sharing of gains and losses. Co-operative institutions empower the weaker

sections of society and help them to allocate their meagre resources to avoid being exploited by outsiders. Robert Klitgaard

(1997) in his paper "Unanticipated Consequences” in Anti-poverty programmes “argues about the fact “why so many well-

intentioned efforts to reduce poverty results in unanticipated outcomes? The most important typology evolved is concerned with

information and incentive, and how they affect the institutions through which anti-poverty efforts are implemented. The study

found various reasons for the unanticipated negative consequences, such as dependence on a wrong model and therefore a failure,

the tendency to overlook statistical phenomena or incentive effects, and most important of all, the insufficient attention to the

economics of the institutions that implement anti-poverty programmes. Much attention needs to be given to the ‘institutional I0

adjustment’, so that the markets and government institutions through which anti-poverty programmes are implemented have the

information and incentives to make them work. Gaiha (1996) points to the wrong targeting of the Employment Guarantee Scheme

(EGS). He found that there was a marked deterioration in it over the period 1979 89 reflected in not just a larger concentration of

the more affluent among the EGS participants, but also their much larger gains from participating in this scheme. A large segment

of the poor depended heavily on EGS as an additional source of income, with significant welfare gains during 1979-84. Apart

from this, a large subset, especially of relatively low-income participants also withdrew from EGS when overall economic

conditions improved. Hemalata Rao and Devendra Babu (1994) studied the involvement of rural poor, focusing on scheduled

castes and scheduled tribes, in the socio-economic empowerment programmes. The study based in Karnataka found that the mode

of selection of beneficiaries was more or less without any proper basis. Though the guidelines of the schemes specified certain

procedures to be followed in the selection of beneficiaries, many such procedures were not followed strictly. Major concentration

of the selected beneficiaries was in the productive age (18 to 65) but as the age group went up the number of beneficiaries

declined. The study revealed the inadequacy of technical supervision and guidance needed for the effective implementation of

schemes. Due to the lack of follow-up actions of schemes, rampant misuse of funds took place. Thus, the schemes intended to

alleviate poverty did not attain the target. Yogendra Nath Das (1994), states that the history of rural development in India started

with the launching of Community Development Programmes in October 1952. The objective was to bring all-round socio-

economic development of the villages with the cooperation and participation of the rural people. To enhance participation of local

people in the decision-making process, Panchayat Raj System was introduced in 1961 and a three-tier system of Gram Panchayat,

Block Samitis and Zila Parishad was established. However, this programme failed in increasing the agricultural production, in

removing illiteracy and unemployment, in improving health and hygiene condition because of the fact that it gave much attention

on basic amenities than on economic development, and people did not participate equally, adequately, mostly officers were not

rural-oriented. Firstly, the scheme was financed by the Central Government later on in 1966 responsibility shifted to the State

Governments so it was isolated. Chathukulam J., et al (2002) in their study on Participation of rural poor in rural development

programmes and social welfare schemes made a case study in a selected village panchayat to examine (i) the process of

identification of the rural poor for selecting beneficiaries of various development and welfare schemes; (ii) whether the assistance

received have had sustainable impact on the levels of living of the beneficiaries; and (iii) the administrative and organizational

efficiency of the local level institutions for programme implementation. The study came out with the following findings: (i) the

poor in the panchayat were identified based on the below poverty line list prepared by Block Panchayats; (ii) most of the

beneficiaries belonged to very low income categories; (iii) IRDP which constituted the major scheme of development at the micro

level and 34 per cent of the beneficiaries of which was poor, has helped some of the beneficiaries to move upwards to above the

poverty line; (iv) in more than 75 per cent of the cases, repayment was prompt, particularly so, in the case of women beneficiaries;

(v) credit-absorption capacity was higher in the case of artisanal schemes and relatively low for cottage industry schemes; (vi) the

rural poor do not participate actively in decision-making in the Grama Sabhas; and (vii) the role of contractors continues to be

strong in the implementation of panchayat level projects. G. Gopikuttan (1990) has attempted to examine this issue in three

panchayats in Pathanamthitta district. The specific objectives of his study are to examine (i) the nature of housing demand for

different groups of the rural poor and the mismatch between supply (in terms of public provision) and demand; (ii) whether the

public provision has helped to achieve the desired goals; (iii) the extent to which ongoing housing schemes make use of the

capabilities of the rural poor, locally available resources, and cost-effective technologies; (iv) the share of gross investment in

public scheme houses as a proportion of gross residential construction in selected panchayats; (v) the changes in rural housing

quality taking place over the time; and (vi) the scope for integrating the public housing schemes with the ongoing local level

planning process. Gopinathan Nair (2004) attempted to examine (i) the making of the Plan, its size and dimensions, programme

contents and programme quality; (ii) the actual implementation of the Plans and related issues such as selection of beneficiaries,

utilization of funds, and generation of additional income; and (iii) assessment of the role of party politics in panchayat level

planning, and the extent of public participation. Seema. (2001) The Integrated Child Development Scheme is a scheme of the

Government of India implemented through the State Governments to meet the health, nutritional, and educational needs of the

poor, poor infants, and pre-schoolchildren, and women in their childbearing years. The scheme seeks to meet these basic





objectives by delivering an appropriate combination of basic services namely, supplementary nutrition and health education,

immunization, health checkup, referral services, and non-formal pre-school education. Srikumar Chattopadhyay (1999) and his

team have attempted to make an assessment of the PRM methodology with the objectives of (i) assessing the technical and

organizational aspects of PRM; (ii) comparing the action plans of panchayats covered by PRM with those not covered by PRM;

(iii) studying how PRM is being translated into planning at the panchayat level; and (iv) analyzing the scope of integrating PRM

with other activities of the panchayat. B. Ramesh, (2004) in his project located at Kalady grama panchayat in Ernakulam district,

has attempted to utilize participatory research methods for data collection with the objective of (i) preparing a master plan for the

panchayat, and (ii) getting the involvement of the panchayat in Plan implementation in a limited way. The project has completed

resource-mapping, socio-economic analysis and sector-specific studies and on that basis a draft master plan for the panchayat has

been prepared. Attempts have also been made to develop low-cost techniques for the large-scale application of tissue culture in

ornamental and medicinal plants and technological up gradation of handicrafts. Unlike in Nenmeni panchayat, in Kalady the

attitude of political parties towards the project has been discouraging. There has been instability in the administration of the

panchayat because of the shift of political power from LDF to UDF. Because of this, the inputs supplied by the project could not

be utilized in the planning, as the entire planning process in the panchayat is at a very low key. R. P. Nair (2004) aims at

examining the potentials and feasibilities for mobilization of resources by panchayats with the following objectives (i) to estimate

the fiscal potential of village panchayats; (ii) to compare the fiscal potential with actual efforts made during the past few years;

and (iii) to identify the constraints faced by the village panchayats in resource mobilization. To achieve the above objectives,

information is gathered primarily at three levels viz. panchayats, units engaged in non-agricultural activities, and households.

Separate questionnaires have been designed for each unit of study taking into account the data requirements for improving the

resource base of the panchayats. Baltiwala (1997) has observed, “Empowerment is a process which exchange existing power

relation by addressing itself to three dimensions material, human and intellectual resources. It is a process which must challenge

and change ideology, the set of ideas, attitudes, beliefs and practice in which gender bias or social bias like caste, class,

regionalism and communalism are embedded”. Sharada Muraleedharan (2003) has noted that decentralized planning offers

democracy in place of domination, empowerment in place of submission, environment and community in place of profit, and in

place of passivity. The reality is that the women’s movement is weak, in its capacity to obstruct unsatisfactory policy outcomes.

Various reports present contrasting pictures about women’s participation in decentralization process. Government efforts to

participate more marginalized groups and weaker sections have been a tremendous success in rural areas, whereas it seems that it

has suffered a slight set back in the case of urban women, as there has been a retreat of urban women from the arena of

development activities. Majumdar and Bhawar Singh (1997) attempt a critical study of conceptual and historical evolution of

the panchayat raj institutions in India. They shed light on various phases of theoretical developments and practical implementation

of the system of panchayat raj in Indian societies. In their views, panchayat raj institutions are to be remodeled in such a way that

to integrate them with remunerative organizations operating in the rural areas so that their functional efficiency can be enhanced.

Joshi (2000) discusses the role of panchayat raj institutions in the alleviation of rural poverty. The study infers that the

functionaries at the grass root level have inadequate knowledge of the rules and procedures of various transactions and that

physical capacity to undertake development plan are very poor. Acharya et all (2002) examine the issues of second generation

panchayats and traces out some of the problems of PRIs like bureaucratic and institutional barriers, lack of cooperation from the

departments in the devolution of functions and powers, reluctance among the departments to transfer their schemes, growing

tendency among the centre and state to introduce programmes to be implemented by parallel organizations’, etc., Sudhakar

(2002) discusses the role of new panchayat in the rural development. In his view, the new panchayat system will enable the public

to discharge their functions in a responsible manner and thereby it enhances the effectiveness of the developmental programmes.

He concludes that the panchayat raj system encourages local initiatives, local technologies, local skills and local entrepreneurial

abilities. Vyasulu (2003) explains that the process of democratic decentralization enables to bridge the gap between decision-

making centers and centers of action. It also increases the effectiveness of democratic system and the implementation of rural

development programmes. From the literature review, it can be inferred that the most of the studies are macro in nature focusing

on evolution, growth and the significance of panchayat raj institutions. Hence, a micro study on role of gram panchayats in village

development is of much significance

THE OBJECTIVE OF PROPOSED STUDY

To study the various schemes introduced by the government.

To study the role of panchayats in implementation of various schemes.

To study the impact of various schemes on socio economic development of the villages.

To suggest policy measures based on the study.

NEED AND IMPORTANCE OF PROPOSED STUDY

The Panchayat Raj System is playing important role in rural development. Gram panchayats has to take the responsibility of

implementing various rural development programmes of both state and central governments. There are 74 villages in Mangalore

Taluk with the local elected bodies representing different political party. Government of India and government of Karnataka have





been spending crores of rupees for the overall development of the villages. The study is needed for evaluating the role of

panchayat and the impact of the same on the development of study area.

METHODOLOGY USED

The proposed study is empirical in nature. It will be carried in sample villages of Mangalore Taluk of Dakshina Kannada district.

The proposed study will be the combination of methodologies for data collection including questionnaire surveys, semi-structured

interviews, focus group discussions, and participant observation. All the secondary data available with the panchayats relating to

various dimensions of planning will be collected. For the purpose of data analysis statistical tools like chi square, trend analysis,

correlation will be used.

CONCLUSION

The implementation of rural development programs through the Panchayat Raj institutions has to make drastic change in the socio

economic conditions of the rural people. The implementation of rural development programs will affect even the social and

political affairs of the people of the selected area. In the economic front of the rural development, programs have to create an

improvement in economic position of the villages. Because of implementation of rural development programs most of the people

must gain additional income. From the created assets which has resulted into deprivation in selected areas. After the

implementation of rural developments programs, efforts have be made to strengthen villages, this will bring vigorous change in

socio economic setup of the Gram Panchayat. The implemented rural programs like SJGSY, housing schemes and power schemes

have to be studied to find out gainful activities for poor in selected area and its impact on bringing people above the poverty line.

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A STUDY ON “BRAND AWARENESS IN CUSTOMER”

WITH SPECIAL REFERENCE TO FMCG PRODUCTS

Prashant Bhat13 Soumyashree H. Bhat14 Nishmitha D. Shetty15 Chiathra Shetty16

INTRODUCTION

The most valuable asset in any business is considered its “Brand”. Branding and brand equity has been the topic of interest for the

researchers in the area of Marketing, because of the significant intangible value of brand building and managing brand equity has

become a priority for companies of all sizes in a wide variety of industries and markets. Brands are at the heart of marketing and

business strategy.

Marketing of FMCGs plays a pivotal role in the growth and development of a country irrespective of the size and population. It is

a fact that the development of FMCG marketing has always kept pace with the economic growth of India. Although the literature

identifies several dimensions of brand equity from different other industries, existing research on brand equity in the FMCG

industry is still spare. Despite the growing importance of the Indian FMCG industry, the topic of how the different FMCG

products builds brand equity appears to be under-researched. The results of this research also lead to a deeper understanding of a

FMCG brand equity concept as well as some implications for practitioners working in the FMCG industry.

Apart from the implications in the FMCG industry, the content and meaning of brand equity have been debated in different ways

and for a number of different purposes, so far no common viewpoint has been emerged. Although a great amount of research has

been conducted regarding the concept of customer-based brand equity, research on the association of customer with the brands of

FMCG companies is under researched. Thus, the objective of this paper is to test the most popularly FMCG Company and brand

awareness in the customers. This study also aims to establish a relationship between cost, quality, and brand image within the

context of FMCG industry in India.

NEED OF THE STUDY

FMCG industry is one of the booming industries in the economy. Customer’s awareness and association with the company and its

products is an important aspect that needs to be studied under FMCG industry:

To know the FMCG Industry profile with respect to brand equity.

To analyze the marketing strategies for FMCG products.

OBJECTIVE OF STUDY

The research has the following specific objectives:

To know brand awareness in the customers for FMCG products.

Does the brand affect the customer’s choice for purchase?

To study relationship between brand, quality and price of FMCG products.

SCOPE OF STUDY

The study will help us to know the importance of brand image in FMCG industry. This study also shed light on awareness in

customer about the FMCG products in present scenario and suggests the measure to increase the awareness and use this awareness

as marketing strategy for promotion of the products. Thus, this research focuses on the aspect, which is under researched.


The data source used in this research paper is as follows:

Secondary Data: The paper also took help of secondary data like various research papers, journals, newspapers, books

and online database.

13Assistant Professor, P.G. Department of Commerce, Alva’s College, Karnataka, India, [email protected] 14II Year M.Com (Insurance & Bank Management), Alva’s College, Karnataka, India, [email protected] 15II Year M.Com (Insurance & Bank Management), Alva’s College, Karnataka, India, [email protected] 16II Year M.Com (Insurance & Bank Management), Alva’s College, Karnataka, India, [email protected]









Primary Data: Collected by the method of questionnaire given to random population. The sample space used for this

filed work is 100. Simple statistical tool such as average and percentage and Spearman’s Rank Correlation is used to

analyze the data.

LIMITATION OF THE STUDY

The limitations of this research paper are as follows:

The primary data is collected by questionnaire method thus, non-respondents has an effect on interpretation.

The samples are only taken from people who dwell in and around Mangalore.

ANALYSIS AND INTERPRETATION

Chart-1: Demographic Information


Interpretation: The population collected for this research work consists of 100 respondents. These respondents include 22 male

and 78 female respondents of different age group ranging from 15 years to 40 years approximately.

Chart-2: Familiarity with FMCG Products


Interpretation: The above chart represents the percentage of customer who are familiar with the FMCG products that they buy.

Around 38% of people are very familiar, 33% are familiar, 17% are slightly familiar. Very few percentages of people are

extremely familiar or not familiar at all that is 8% and 4% respectively.

15-20 years 20-25 years 25-30 years 30-35 years 35 & above Total

411

2 4 1

2219

51

2 5 1

78

Male Female

Extremely

Familiar

Very Familiar Moderately

Familiar

Slightly Familiar Not at all

Familiar

8%

38%

33%

17%

4%





Chart-3: Frequency of Purchase


Interpretation: The above chart prominently shows that around 42 % i.e. the majority of the population purchases FMCG goods

every month. The remaining purchase FMCG in the duration of a week, 2 months or 3 months

Chart-4: Brands Currently Used by Customers


Interpretation: We have found that customers currently use FMCG products of more than one company. Thus on an average

49% of people use Nestle company products, 41% use ITC, 40% use HUL, 27% use Dabur, 19% use P&G and 16% use Godrej.

Chart-5: Role of brand in Purchase Decision


Every week Every Month Every 2 Months Every 3 Months Total

17%

42%

22%17%

100%

HUL ITC P&G Nestle Dabour Godrej

40% 41%

19%

49%

27%

16%

Important Not Important Total

83%

17%

100%

Percentage





Interpretation: Brand image plays an important role in purchase decision of customers. Majority i.e. around 83% of people voted

that brand plays an important role in their purchase decision on the customers.

Chart-6: Brand Awareness


Interpretation: The chart shows the awareness in the customer and association of them with the products and companies to

which the products belongs. As per the chart it clearly show that only 5% and extremely aware whereas 44% are moderately

aware, 36% are slightly aware and 15% are not aware at all.

Chart-7: Association of Product with its Company


Interpretation: The chart displays the association of products with its company. It can be observed that Nestle Company has a

strong association with its product. The remaining companies are moderately associated with the percentage ranging from 35 % to

50%.

Chart-8: Frequent Change in Purchase Decision


Slightly Aware Moderately

Aware

Very Aware Extremely Aware

15

36 44

5

No of repondents

HUL ITC Dabour Nestle P & .G Godrej

41.33% 43.33%48.66%

76%

44.33%37.66%

YES NO Total

55%45%

100%





Interpretation: In the above chart 55% of population, agree to the fact that they frequently change purchase decision when they

buy and FMCG products. Only 45% of population disagrees to this.

Chart-9: Basis for Purchase


Interpretation: The purchase decision of the customer depends on different basis. On an average, 80% of respondents purchase

the product based on the quality; 15% on cost of the product, 14% on the brand image and 10% on offers and discount.

Chart-10: Loyalty of Customer towards FMCG Brands


Interpretation: The above chart shows the loyalty of customer towards FMCG products. Majority of population that is 61

respondents stated that they are moderately loyal. Remaining 12 respondents stated that they are disloyal and only 27 respondents

stated that they are extremely loyal.

Chart-11: Association of Customer with the Product Tag Lines


Cost effectiveness Quality Brand Image Offers And

Discount

15%

80%

14%10%

Disloyal Moderately Loyal Very Loyal Total

12

61

27

100

No of repondents

Cadbury Fair &

Handsome

Surf

Excel

Bingo Gems Bru Classmate

75

26

7285 87

6988

25

74

28 15 1331

12

Correct Ans. Wrong Ans.





Interpretation: We can clearly see that majority respondents can associate the products with its tagline.

Chart-12: Advertisement Plays an Important Role in Purchase Decision


Interpretation: Majority of population that is around 52% agree to the statement that advertisement play an important role in

purchase decision for FMCG goods. Only 35% of population strong agrees and 2% strongly disagree. 11% of population neither

agree nor disagree.

Chart-13: Competition from Local Products


Interpretation: Majority of population that is 70% believe that branded FMCG product do have a tough competition from the

local products. Only remaining 30% population thinks that there is no competition at all

Chart-14: A branded Product Increases your Reputation


Strongly Agree Agree Neither Agree

nor Disagree

Disagree Strongly

Disagree

35%

52%

11%

0% 2%

Tough Competition No Competition

70%

30%

Strongly Agree Agree Neither Agree nor

Disagree

Disagree Strongly Disagree

19%

48%

23%

7%3%





Interpretation: “A branded product increases the reputation of the customer” this statement is agreed by 48% of population.

Remaining 19% strongly agree, 23% neither agree nor disagree, 7% disagree, and 3% strongly disagree.

Table-1: Recognition of FMCG Brands (HUL, ITC, P&G, Nestle, Dabur, Godrej)

Number of Brands Known Number of Respondent Percentage

1 19 19%

2 14 14%

3 12 12%

4 6 6%

5 13 13%

6 36 36%

Total 100 100


Interpretation: The above chart shows the number of top FMCG brands in India which the customers have heard of. Around

36% of the population has heard all the brands given above. 19% have only heard of 1 brand, 14% have heard about 2 brands,

12% have heard about 3 brands, 6% have heard of 4 brands and 13% have heard of 5 brands.

Table-2: Ranking for FMCG Companies

Company Ranking

Cost Effective Quality Brand Image

HUL 1 1 1

ITC 3.5 5 2

P&G 6 2 3.5

Godrej 2 7 3.5

Dabur 3.5 3.5 6

Nestle 5 6 5

Britannia 7 3.5 7


Interpretation: The above chart show the rank given to these top FMCG companies based on cost, quality, and brand image.

These ranks have been assigned based on average of ranks given to them by 100 respondents. In this, we can clearly observe that

HUL stand in place of 1st rank with respect to all the aspects.

With the help of above chart relationship between cost, quality, brand image can be established. Using Spearman’s rank

correlation we determined that there is high positive correlation between all the factor that is cost and quality, quality and brand

and brand and cost. The coefficient of correlation between cost and quality is 0.09, quality and brand image is 0.21, and that of

brand image and cost is 0.69

FINDINGS

The analysis and interpretation process has leaded us to some significant and interesting finding which are as follows:

The respondents in this research majorly belong to the age group ranging from 20 to 25 years. In addition, the number of

female respondent is higher when compared to male respondents.

It was observed that majority of the respondents are very familiar with the brand of FMCG goods they purchase.

However, at the same time they agree to the fact that they are not extremely familiar about the products.

Majority of the respondents have heard at least the names of the top FMCG companies that operate in India.

FMCG is prominently featured frequently purchased goods. The analysis of data has found that majority of the

population buys an FMCG product within the duration of a month.

The analysis showed that population use more than one company’s products presently and they have difference

preference for company for different FMCG products.

Brand plays a vital role in the purchase decision of the customer. Here brand refers to the image of the product or the

company present in the minds of the customers.

The results of the test taken related to the awareness in customer of the FMCG products and the companies it belongs to

shows that majority are moderately aware. Only 5% of total population is completely aware about the most of the

products.





It was also found that population are more aware about products of Nestle Company and least about Godrej company.

This is because Nestle Company promote all its products associating the product with the company name. Whereas the

other FMCG companies only promote the products and does not given any importance on promoting companies name.

It was also found that majority of the customers change their preference in brand of FMCG products they use more often

due to the reasons such as change in taste, effect of advertisement on their purchase decision and also sometime on

offer and discounts provided by a particular company.

Quality plays a major basis for the purchase of FMCG products according to majority of the respondents.

Respondents have rated themselves as moderately loyal customer with respect to FMCG products.

After analyzing the data, we can say that people association with tag lines of the product is very strong. Majority of the

respondent can positively relate products with their respective tag lines as they are advertised in that manner.

An advertisement of the FMCG product plays a vital role in changing the mindset of customer and has a valuable effect

on the purchase decision.

HUL has secured 1st rank in all the aspect such as cost, quality and brand image. Surprisingly, brand awareness emerged

as a not so important factor indicating that having a brand name alone is not a guarantee of a successful brand in the

FMCG industry.

By further analyzing, the data a relationship between cost, quality and brand image was successfully established. It was

found that there is a high degree of positive correlation between cost and quality, quality and brand image, cost and

brand image.

A local FMCG producer gives tough competition to branded products.

Majority of the population agree to the fact that purchasing a branded FMCG product increase their reputation and gives

them a sense of pride.

SUGGESTIONS

Building a brand image and proper positioning of the product plays an important role in marketing of the FMCG

products as this industry witness a lot of competition.

As local producers also give a tough competition to the top FMCG companies, these companies must come up with

innovative features, with reasonable cost to attract customers.

It is agreed by the respondent’s hat usage of branded products increases their reputation, thus this must be used as a

marketing strategy and promotion on the brand must be done in such a way that depicts the increase in reputation to the

customers.

Customer has lowest association with Godrej company products thus the company must put a great effort in promoting

in FMCG products. In addition, majority of the people have an opinion that Godrej Company products are not quality

products, thus this image cannot be removed by proper product positioning in the minds of the people and bringing

innovative changes in products to attract them.

CONCLUSION

Building brand equity is crucial for FMCG products where consumers heavily depend on the brand for the product category in a

highly competitive and brand conscious market. Researchers found that brand awareness, brand loyalty, perceived quality and

brand associations had a significant effect on band equity. Brand association demonstrated the strongest impact, indicating the

essential role of developing feels and thoughts with the brand in building brand equity in the Indian FMCG industry. This means

that, consistent with previous studies, strong associations that support a competitively attractive and distinct brand position could

create a favorable feeling and behavior toward the FMCG brands.

The results also portrayed the significant influence of brand loyalty to the development of brand equity. The empirical data and

statistical tests in the study provided support for the positive and direct relationship between perceived quality, cost and brand

equity. Surprisingly, brand awareness emerged as a not so important factor indicating that having a brand name alone is not a

guarantee of a successful brand in the FMCG industry.

Thus, we can conclude that in FMCG industry should create a valuable brand equity and proper positioning of the product

importantly to fight the tough competition that is present in this industry.

REFERENCES

1. Retrieved from http://www.theijm.com/vol1issue4/2.pdf

*****

http://www.theijm.com/vol1issue4/2.pdf





IMPACT OF SHOPPING MALLS ON LIFE STYLE OF PEOPLE WITH REFERENCE TO

DAKSHINA KANNADA DISTRICT

Zeeval Khan I.17 Sandhya18 Divya19 Akshatha Shetty20

ABSTRACT

The retail sector in India is emerging as one of the largest sectors in the economy. The retail industry in India has come forth

as one of the most dynamic and fast paced industries with several players entering the market. The India retail industry is

gradually inching its way towards becoming the next boom industry. Modern retailing has entered into the retail market in

India as is observed in the form of bustling shopping centers, multi-stored malls and the huge complexes that offer shopping,

entertainment and food all under one roof. Living an urban life is overcrowded cities, lack of time and problems associated

with metropolitan life style, have altered lives of people all around the globe and considerable changes in different categories

and aspects of life have occurred, for example in buying habits of people. Emergence and growth of shopping malls are

products of such alterations.

This research mainly concentrates on the frequency of visits to shopping malls and to find out influence of shopping malls on

life style of people. The research is done through primary and secondary information. To make data more reliable

questionnaire was developed and 100 respondents opinion is collected. In addition, information is collected through various

journals, research Article and through Internet. This study help to know the current situation of shopping malls and its impact

on the life style of the people and it also helps to evaluate the performance of shopping malls in current trend and to

understand the customer preference for different malls.

KEYWORDS

Shopping Mall, Life Style, Customer Preference, Current Situation etc.

INTRODUCTION

Retail is the process of selling consumer goods and/or services to customers through multiple channels of distribution to earn a

profit. Demand is created through diverse target markets and promotional tactics, satisfying consumers' wants and needs through a

lean supply chain. Retailing is a distribution channel function, where one organisations buys products from supplying firms or

manufactures products themselves, and then sells these directly to consumers. In majority of retail situations, the organisations,

from whom a consumer buys, is a reseller of products obtained from others, and not the product manufacturer. However, some

manufacturers do operate their own retail outlets in a corporate channel arrangement.

A shopping mall is a building or group of buildings that contains stores. The stores are connected by walkways so that consumers

can easily walk between the stores. Malls can be built in an enclosed or open-air format. Malls can be located everywhere

throughout the world and are travel destinations for tourists who love to shop. A typical one houses department stores, boutiques,

movie theaters, photography studios, and other specialty stores. Other features of a shopping mall include kiosks, food courts, and

arcades. Kiosks are booths located in pedestrian areas of the mall where small products or services are sold. Food courts are areas

within the mall that contain fast-food restaurants and a seating area. Arcades are popular destinations for some teens because they

are entertainment rooms where people can play coin-operated arcade games. As a part of globalization as well as privatization in

the economy, the shopping plays very important role. Earlier people had to buy different things at different places and there were

separate markets for various things. People used to visit general stores for purchasing daily-required household materials. Now,

the things have been changed completely and almost everything is available under one roof. The shopping malls have made

shopping an easy activity for people now, everything is available at fingertips. The malls also help in enhancing the need of

consumable items with national and international fame different brands, which were not available in retail market. Each mall has

its own marketing strategies that make it a great crowd puller. Even in the remotest areas of any big city, mall is available. In

India, local shopping malls have been around since late nineties, although they are still concentrated in large urban centers.

Foreign-brand shopping malls began entering the market in late 2000s.

The increased competition has resulted in shopping malls reaching smaller cities in their efforts to find new consumers and wage

price wars. Hence, while Indian shopping malls catered only to the upper class in the last decade and early this decade, their

17Assistant Professor, P.G. Department of Commerce (M.Com), Alva’s College, Karnataka, India, [email protected] 18II Year M.Com (Insurance & Bank Management), Alva’s College, Karnataka, India, [email protected] 19II Year M.Com (Insurance & Bank Management), Alva’s College, Karnataka, India, [email protected] 20II Year M.Com (Insurance & Bank Management), Alva’s College, Karnataka, India, [email protected]









mushrooming in smaller cities and predatory pricing practices mean that consumers from the lower classes now have easy access

to shopping malls.

NEED OF THE STUDY

To study the current situation of shopping malls and its impact on the life style of the people.

To evaluate the performance of shopping malls in current trend.

To understand the customer preference for the different malls.

OBJECTIVE OF RESEARCH

To find out the frequency of visits to shopping malls.

To find out influence of shopping malls on life style of people.

RESEARCH DESIGN

Primary Data: The research is done through primary information. To make data more reliable questionnaire was

developed and 100 respondents opinion is collected.

Secondary Data: information collected through various journals, research Article and through Internet.

LIMITATION OF STUDY

The samples are taken only from people who dwell in an around Mangalore.

The collected information subject to bias as the study also includes secondary information.

RETAIL IN INDIA: INDUSTRY STRUCTURE

The retail industry in India is highly fragmented and unorganized. Earlier on retailing in India was mostly done through family-

owned small stores with limited merchandise, popularly known as kirana or mom-and-pop stores. In those times, food and grocery

were shopped from clusters of open kiosks and stalls called mandis. There were also occasional fairs and festivals where people

went to shop. In the twentieth century, infusion of western concepts brought about changes in the structure of retailing. There

were some traditional retail chains like Nilgiri and Akbarallys that were set up on the lines of western retail concepts of

supermarkets. The government set up the public distribution system (PDS) outlets to sell subsidized food and started the Khadi

Gram Udyog to sell clothes made of cotton fabric. Since liberalization in early 1990s, many Indian players like Shoppers Stop,

Pantaloon Retail India Ltd (PRIL), Spencer Retail ventured into the organized retail sector and have grown by many folds since

then. These were the pioneers of the organized Indian retail formats. With the opening up of foreign direct investment in single-

brand retail and cash–and-carry formats, a new chapter unfolded in the retail space. Many single-brand retailers took advantage of

this opportunity. The cash-and-carry format has proved to be an entry route for global multichannel retailing giants like Metro,

Wal-Mart and Tesco.

Retailers offer many benefits to suppliers and customers as resellers. Consumers, for instance, are able to purchase small

quantities of an assortment of products at a reasonably affordable price. Similarly, suppliers get an opportunity to reach their

target market, build product demand through retail promotions, and provide consumer feedback to the product marketer. During

the last few years, the Indian retail market has seen considerable growth in the organized segment. Major domestic players have

entered the retail arena and have ambitious plans to expand in the future years across verticals, formats, and cities. For example,

companies like Reliance, Tata, Bharti, Adani Enterprise, have been investing considerably in the booming Indian retail sector.

Besides, a number of transnational corporations have also set up retail chains in collaboration with big Indian companies.

IMPORTANCE OF RETAIL INDUSTRY

Retail involves the selling of goods to customers. While meeting the needs of customers, following are some of the functions

performed by a retailer:

Customer Convenience

Perhaps the most important role of bringing the ready to be consumed goods to the doorstep of the consumer is performed by the

retail community. Consumers benefit from retailing as retailers perform marketing functions that makes it possible for customers

to have access to a broad variety of products and services. Retailing also helps to create place, time and possession utilities. A

retailer's service also helps to enhance a product's image. Retailers stock goods and ensure the availability of products and services

just when the customer needs them. Convenience Stores operate over extended hours through the week and give customers greater

flexibility and choice.





Accessibility

Products and services have no value for consumers until they are acquired and used by the customers. Retailers acquire products

and services from different places and. assort them at a single point as per the needs of the consumers and thus facilitate

customers' access.

Convenience of Size

Retailers break bulk and serve the products in quantities and sizes as desired by the customer. For example, shampoo is available

in small sachets. The retailer helps consumer by providing appropriate products, service and advice in the packing and quantities

desired by them.

Associated Services

A vibrant retail sector benefits the consumers by providing range of products and services efficiently. Retailing can be done either

in fixed locations or online. Retailing includes subordinated services, such as delivery. The term "retailer" is also applied where a

service provider services the needs of a large number of individuals, such as a public utility, like electric power. Retailing also

helps to increase the living standards and enable the consumers to possess various goods, services and utilities.

Supply Chain

Retailers are part of an integrated system called the supply-chain. A retailer purchases goods or products in large quantities from

manufacturers or directly through a wholesaler, and then sells smaller quantities to the consumer for a profit. Retailers participate

in the sorting process by collecting an assortment of goods and services from a wide variety of suppliers and offering them for

sale. The width and depth of assortment depend upon the individual retailer's strategy. Retailers provide the vital link between

producers and ultimate consumers.

Value Chain

When consumers purchase goods, retailers must order more goods to replenish their stock. In turn, factories must manufacture the

goods for the retailers. The factories then purchase more raw materials to use to manufacture more goods. This is how consumer

spending is able to drive much of the economy.

Research & Information

The retailer provides useful information across the supply chain. He informs and educates customers about product features and

benefits. They provide information to consumers through advertising, displays and signs and sales personnel. Marketing research

support is given to other channels, members. Retailing in a way, is the final stage in marketing channels for consumer products.

He also provides feedback about consumer requirements to the manufacturers and wholesalers, which help them in planning

production and supply.

Mobilizing Finance

Retailing industry mobilize the investment and savings of people, as a small shop can be set up with minimal investment. They

store merchandise, mark prices on it, place items on the selling floor and otherwise handle products; usually they pay suppliers for

items before selling them to final customers. They complete transactions by using appropriate locations, and timings, credit

policies, and other services e.g. delivery. They influence life style of consumers and help people to build their identity in a social

setting.

Economic Development

Retailing has great impact on economic development of a nation. Retailing has become an intrinsic part of our daily lives.

Consumer spending on retail goods drives much of the global economy, and the retail industry employs a large number of people.

Nations that have enjoyed the greatest economic and social progress have a vibrant retail sector. Retailing is one of the most

important industries in the world and plays a predominant role in economic development of the country. A healthy retail sector

growth and speeds up economic development.

Employment

There are a large number of people and companies involved in the production, distribution, and retail of goods. Globally, retailing

is the largest revenue generator and employment provider next only to agriculture. It provides opportunities to the poorest and

unskilled along with the educated and skilled. As a major source of employment, retailing offers a wide range of career

opportunities including; store management, merchandising and owning a retail business.

Social Responsibility

Successful retailers also recognize that people want to see the improvements in the general level of consumption and social

cohesion over time. Retailers have to enhance their perceived value to the community by acting as a focal point and through

effective public relations and promotional campaign including sponsorships. This encourages social responsibility behavior by the

corporates where public welfare programs are funded by a certain percentage of purchase prices of company's products.





RETAILING FORMAT IN INDIA

Malls

The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000

sq. ft. to 7,00,000 sq. ft. and above. They lend an ideal shopping experience with an amalgamation of product, service and

entertainment, all under a common roof. Examples include Shoppers Stop, Pyramid, and Pantaloons.

Specialty Stores

Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times

Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.

Discount Stores

As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies

of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non-perishable goods.

Department Stores

Large stores ranging from 20000-50000 sq. ft., catering to a variety of consumer needs. Further classified into localized

departments such as clothing, toys, home, groceries, etc. Departmental Stores are expected to take over the apparel business from

exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai, now has

more than seven large stores (over 30,000 sq. ft.) across India, and even has its own in store brand for clothes called Stop.

Hypermarts / Supermarkets

Large self-service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential

high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be

classified in to mini supermarkets typically 1,000 sq. ft. to 2,000 sq. ft. and large supermarkets ranging from of 3,500 sq. ft. to

5,000 sq. ft. having a strong focus on food & grocery and personal sales.

Convenience Stores

These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover

convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due

to the convenience premium.

COMPANY PROFILE

Big Bazaar: Big bazaar the flagship retail chain of the Future Group is on the verge of achieving a unique milestone in the

History of World Retail by being the first hypermarket format in the globe to rollout fastest 101 stores in a short span of seven

years. Currently, Big Bazaar has 98 stores in the country. Big Bazaars journey began in October 2001, when the young, first

generation entrepreneur Kishore Biyani opened the country’s first hypermarket retail outlet in Kolkata. Big Bazaar, with its wide

range of products and service offering, reflects the aspirations of millions of Indians.

City Center, Mangalore: City center is the fifth largest mall in Karnataka, located at the K S Rao road in Mangalore. It provides

shopping, dining, entertainment and leisure activities. City Centre, Mangalore, first opened its doors on April 25, 2010 land

marking Mangalore's retail sector, and becoming one of the leading retail and leisure destinations in the city. At the time, it

virtually redefined the concept of "malls" for the region. As the first large-scale, mixed-use shopping destination, complete with

retail outlets, restaurants, entertainment facilities, City Centre created an international dimension for one-stop shopping and

entertainment for the city of Mangalore, bringing it to an entirely new level. City Centre encompasses over 8, 50,000 sq. ft. of

retail space. The mall boasts a wide diversity of outlets spreading across five floors with over 149 retail stores and services. Key

anchor stores include Lifestyle, Westside, Max, Reliance Trends, Reliance Digitals, Reliance Jewels, Reliance Time Out, Reliance

Footprint, and Fashion at Big Bazaar & Spar hypermarket. Its entertainment facilities include Fun City that is a complete family

entertainment zone offering fun activities like with arcade games, children’s shooting games, all coin operated games, bumper

cars, and many more in a single place. Fun City also has an exclusive birthday party hall and offers the best birthday party ever for

parents and kids looking to have an out-of-home party experience.

Forum Mall: The forum mall is one of the largest shopping mall in the country. The forum is s place one can go to for almost

anything one wants to buy. The mall has everything from shoes to exercise equipment, from home furnishings to electronic goods.

The Forum was Bangalore's first full-fledged mall with a multi-storey bookstore, 12 cinema halls and other entertainment

facilities. The mall is an attraction for tourists. The shopping mall houses 72,000 m2 (780,000 sq. ft.) of shops over five levels. A

major attraction at the mall is the multiplex, PVR. With over 100 different brands at discount prices, and three floors of undivided

attention for you, shopping will never be the same again.





ANALYSIS AND INTERPRETATION

Consumer Buying Preference for the Product in Shopping

Malls

74% of people prefer to buy only textile products from the

shopping malls and 12% of people buy FMCG from the

shopping malls and other 7% of people buy only electronics

and 6% of people prefer to buy gifting items and only 1% of

people buy utensils from the shopping malls.

Change in Purchasing Decision due to Convincing Skill of

Seller.

66% peoples opinion that their purchasing decision has

changed because of the convincing skill of seller in shopping

malls where as 34% of peoples are not agreeing this

statement.

Effect of Schemes and Offer on Customers

85% of peoples purchasing decision affected by the schemes

and offer given by the shopping malls where as 15% of

peoples purchasing decision is not affected by the schemes

and offer given by the shopping malls.

Consumer Preference for the Quality

People have different opinion about the quality of products

that are available in shopping malls. 63% people opinion that

the product available in shopping malls are high quality and

36% people opinion that the products available are moderate

quality and only 1% peoples opinion that the product are in

low quality.

Shopping Malls are Better than Independent Shops

35% of people visit shopping malls than independent shops

because all product are available in one place. 13% people

visit shopping malls for availability of branded products. 6%

people prefer to visit shopping malls because of quality

product available. Whereas, 46% said they visited because of

all three reasons.

Regularity in Visiting Shopping Malls

37% of people visit the shopping malls on monthly basis and

31% of people visit the shopping malls on once in 6 months

and 17% of people visit the shopping malls in once in 3

months and 15% of people visit the shopping malls on a

weekly basis.

Frequency of Purchasing

46 respondent’s opinion that their frequency of purchasing

has increased because of existence of shopping malls and

remaining 54% people’s opinion is that their frequency of

purchasing is not increased because of existence of shopping

malls.

Loyal Customers

People do not want to purchase from same shopping mall.

Their purchasing decision was keep on changing. 96% people

do not buy from same shopping malls.

Consumer Preference for the Product Available in

Shopping Malls

People have different of opinion on product available in

shopping malls. 21% people consider that product available

in shopping malls is expensive whereas major portion of

respondent (53%) opinion that only moderate priced product

is available in shopping malls. In addition, 26% of people

opinion that the product available in shopping malls are

cheaper.

Consumer Preference about Performance

People have different opinion about the performance of shops

in shopping malls. 60% people considered that performance

of shops in shopping malls is very good whereas 39% people

considered that the performance is average and only 1%

people opinion that the performance of shops in shopping

malls are poor.

Ranking Scale of Shopping Malls

Table-1


From the above table, we can find that majority of people give 1st rank to forum mall, which is more than other malls and 2nd rank

to city center, and 3rd rank to big bazaar.

Malls Rank

I. II. III.

Big Bazaar 21 28 51

City Center 39 46 15

Forum Mall 45 30 25





The Reason for Frequent Visit to Shopping Malls

Graph-1


28% of people visit shopping malls for shopping purpose and 17% of people visit shopping malls only for watching movie and

15% of people for time pass whereas 4%of people visit to have food in shopping malls and only 2% of people for play games

Rating Scale of Shopping Malls

Table-2

Big Bazaar

(1-10)

City Center

(1-10)

Forum Mall

(1-10)

Parking Space 6.43 7.81 7.40

Quality 6.89 7.91 7.88

Availability Of Branded Products 7.14 8.15 8.01

Services 7.03 7.81 7.67

Hygiene And Cleanliness 7.19 8.03 8.23


From the above table, it is clear that city center has been rated highest in parking space, quality, availability of products and

services. In hygiene and cleanliness, the highest rated mall is forum mall.

FINDINGS OF STUDY

According to our research, we can found that most of the people prefer to buy textile products and FMCG from the

shopping malls. It shows that the people think if they buy textile products from malls that is qualitative and other things

like electronics, utensils and gifting items people buy from online marketing, which are very much convincing.

Most of the people visit the shopping malls on a monthly basis, some people visit the malls on weekly basis, and some

people visit in once in 3 month or once in 6 month.

Most of the peoples purchasing decision changes with the offer and schemes given by the shopping malls.

96% of people agreed that they are not loyal customer of a specific mall they change their preference as per the service

provided by the malls.

Most of the people’s opinion that their frequency of purchasing has not increased because of existence of shopping

malls.

Most of the people’s opinion that their purchasing decision changes with the convincing skill of seller in malls. Some of

the sellers in malls can attract any customer by their effective communication.

Most of the people’s opinion that the prices of products available in shopping malls are moderate.

17%2%

28%

4%

15%

34%

a) Watching movies

b) Play games

c) Shopping

d) To have Food

e) Time pass

f) All of the above





According to our research, we found that people have different opinion about the product available in shopping malls.

Most of the people opinion that the products available in shopping malls are high quality products.

Most of the people considered that the performance of shops in shopping malls is very good this shows that they are

satisfied with the performance of shops in shopping malls.

Quality of products, availability of all branded products at one place is the prominent reason for people to choose

shopping malls than independent shops.

Most of the people given a first preference to forum mall and last preference given to big bazaar this shows that they are

very much aware about the services provided by the forum mall.

SUGGESTIONS AND RECOMMENDATIONS

Shopping malls should provide offers and discounts on electronics so that customer can choose these shopping malls for

their purchase.

It should adopt certain strategy to retain its existing customers so that consumer will be loyal to only one mall.

From the research, it is found that people prefer to buy textile products from shopping malls so branded companies

should concentrate on utilizing this opportunity.

Since around 30% of the people visit, the shopping malls rarely. The malls should develop strategies to attract these

people and improve their business.

Since more than 90% of the people are not loyal customers of a specific mall. They should concentrate on the quality of

service provided by these malls.

Since most of the peoples opinion that their frequency of purchase it is not increased because of existence of malls.

Effort should be made by the shopping mall to increase the frequency of purchase by the customer.

The shopping malls should conduct events so that it can draw large number of crowd towards the mall.

CONCLUSION

Malls are an easy and convenient addition to society with the presence of multiple stores in the same location; consumer can buy

their material needs and wants without leaving the single overarching structure so the shopping malls provide quality service to

the customer up to their expectation.

REFERENCES

1. Retrieved from http://www.citycentremangalore.com/AboutUs.aspx?id=2

2. Retrieved from http://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-industry-it...

3. Retrieved from http://www.knowthis.com/retailing/what-is-retailing

4. Retrieved from https://en.wikipedia.org/wiki/User:Tuxide/Wikiproject_Retailing#Project_goals

5. Retrieved from http://teamexcellence.co.in/retail.html

6. Retrieved from http://www.newworldencyclopedia.org/entry/Shopping_mall

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IMPACT OF LEADERSHIP ON THE DEVELOPMENT OF SELF HELP GROUPS

M. Madhavi21 Dr. N. Thirupalu22

ABSTRACT

People come together into groups to achieve a number of needs, which can only be met through collective efforts. Human

groups as such constitute an important social unit in all societies and India is no exception to that. Poverty and Illiteracy are

the main social drawbacks of the developing countries. India with its vast rural population is also becoming vulnerable to this

problem. Because of the illiteracy majority of the population is excluded from the benefits provided by the formal economic

and financial system of the country. This is technically termed as financial exclusion. To bring the excluded sections of the

society into the mainstream financial system, the concept of financial inclusion has emerged as a powerful tool. An efficient

financial inclusion helps in easy availability and accessibility of finance to all the sections of the society irrespective of their

standards of living. Self Help Groups are Groups of women in Rural India who have joined them to uplift their social and

economic status by participating in some productive and developmental activities through the initiatives of Financial

Inclusion and Micro credit facilities extended by NGOs in some areas and supported by National Bank for Agricultural and

Rural Development in others. The mainstream studies suggest that the development of the Groups depend on the Leadership

of the Group largely. Hence, the authors have taken a study on the “Impact of Leadership” on the development of the Groups.

The study is conducted in five selected mandals of Rangareddy District of Andhra Pradesh during 2013.

INTRODUCTION

The historical development of present day Self Help Groups can be attributed to the efforts of Muhammad Yunus, who is a

Bangladeshi banker, Economist and Nobel Peace Prize recipient. He was a professor of Economics where he developed the

concepts of micro credit and microfinance. In 1976, during visits to the poorest households in the village of Jobra near Chittagong

University, Yunus discovered that very small loans could make a disproportionate difference to a poor person. Jobra women who

made bamboo furniture had to take out usurious loans for buying bamboo, to pay their profits to the moneylenders. His first loan,

consisting of US$27.00 from his own pocket, was made to 42 women in the village, who made a net profit of US$0.02 each on the

loan. Yunus believed that given the chance, the poor will repay the borrowed money and hence micro credit could be a viable

business model.

EMERGENCE OF SELF HELP GROUPS

As discussed earlier, Poverty and unemployment are the two major problems of underdeveloped countries, to which India is no

exception. In India, at the end of the ninth five-year plan, 26 per cent of the population was living below the poverty line and in the

rural area; the percentage is slightly higher (27.10%). The overall employment rate is estimated to be at 7.32 per cent, while the

female employment rate is around 8.5 per cent. However, the rate of growth of women unemployment in the rural area is

estimated to be around 9.8 per cent. This is because of the low growth rate of new and productive employment opportunities. By

the end of ninth plan, the rate of growth of employment was only 2.47 per cent. Therefore, the Government of India has

implemented various schemes to reduce poverty and promote gainful employment opportunities. However, the most attractive

scheme with less effort is the “Self Help Groups”.

Self Help Group is a registered or unregistered group of micro-entrepreneurs having homogeneous social, economic background;

voluntarily coming together to save small amounts regularly. These savings contribute to a common fund and meet their

emergency needs in mutual basis. The group members use collective wisdom and peer pressure to ensure proper use of funds and

timely repayment there of SHGs can be formed with 10 to 20 members. These groups can avail themselves of financial facilities

offered by financial institutions and the government.

The strategy of SHG programs has emerged as a popular technique for the facilitation of micro-enterprise development by Government,

Non-Government Organizations and educational institutes in rural areas in India. These initiatives are not simply the expressions of neo-

liberal politics that favor entrepreneurship and markets as the key for development; they are also the expressions of rural people’s needs

and interest in their own participation and empowerment. Self-help as a strategy for social development emphasizes self-reliance, human

agency and action (Vijayanthi KN, 2000). According to social action theory, people take action towards their goals as groups within the

context of their social environment. They have their own, locally defined motives and beliefs, their own interpretations of the meaning of

a situation, and they control their own actions.

21Research Scholar, Dravidian University; and Director, Aurora’s PG College, Telangana, India, [email protected] 22 Professor, Dravidian University; and Professor, Department of Management, Aurora’s PG College, Telangana, India,

[email protected]







The first effort in institutionalizing rural credit was made by the Government of India in the first decade of twenty first century

with the emergence of Co-operative Societies Act, in 1904. In 1975, Regional Rural Banks were promoted with the objective of

accelerating rural economic development of the identified target groups i.e., weaker sections comprising small and marginal

farmers, agricultural laborers, artisans, small entrepreneurs etc.

With a view to evolve supplementary credit strategies for reaching the unreached rural poor in the rural areas like the landless

agricultural laborers, rural poor women etc., in a transparent and a cost effective way, National Bank for Agricultural and Rural

Development (NABARD) has introduced in 1992-93, a pilot project for linking SHGs with banks. The programme has helped in

resurgence of an alternative credit system administered by the clientele themselves, who have organized themselves into Self Help

Groups. Thus, an informal credit system was evolved with the assistance from formal financial institutions. The agencies involved

in the scheme were NABARD, Banks, NGOs and SHG members.

LEADERSHIP IN GROUPS

Leadership may be defined as the influence that particular individuals (leaders) exert upon the goal achievement of others

(subordinates) in an organizational context. It is established through a number of early researches that leaders have an ability to

see how different aspects of a situation fit together and influence each other. They seek out alliances, opportunities, and approach

goals in a proactive way. They have a positive effect on others, which attracts support from those who have similar needs for

accomplishment (Lewin, 1946). Their self-confidence creates a belief in other people’s abilities; therefore, emphasis is placed on

empowerment and freedom. Leadership has two distinct aspects: i) the individual who exerts influence, and ii) those that are the

objects of this influence. Successful leadership depends, largely, on the environment and situation in which these dynamics exist.

Leaders facilitate group functioning. A leaderless group faces problems in maintaining order and focus on group functioning. All groups

either formally or informally elect or select leaders to facilitate the functioning of the group. The development of leadership significantly

affects the development of the group. As pointed earlier, the effectiveness of the group is measured on two indicators, i.e., the emotional

environment and the task orientation. It has been suggested that some leaders are more task oriented whereas some others are happier to

keep the team together. In groups, leaders provide different inputs to enhance the goal attainment. The leadership has the potential of goal

attainment. Unfocused leadership results in wastage and delays goal achievement. In such groups, the functioning would be stressful and

may lead to conflicts sometimes.

OBJECTIVES OF STUDY

To study the importance of groups and emergence of the groups as significant constituents of the Indian Rural Society.

To understand the conceptual background and to study relevant literature on Self Help Groups.

To study the impact of Leadership in development of Self Help Groups.

LITERATURE REVIEW

Mansuri (2011) observed that the emergence of women development in India depends upon closely interlinked, economic, social,

cultural, religious, psychological, and institutional variables. The rural women can be very effective agents of change for better

homes, better society and ultimately for the development of robust economy for India which is very much essential in the present

global scenario.

Parida (2011) is of the opinion that the women power needs to be well directed and motivated on various developmental activities

so that women can be more productive and can become effective earners. NGOs are playing an active role in the promotion of

women lead self-help groups and these needs to be encouraged further.

Dhiren Vandra (2010) analyzed that SHGs had significant impact on the family of the members. Their status and standard of

living showed a positive change when compared to their status before joining the group. Majority of the women came out from

their household activities and started their own business however small it may be. The confidence level of women increased

immensely with this new development.

Srinivasan (2010) observed that the women members of SHGs declared that after joining the SHG they gained certain

commercial and marketing skills like borrowing from the bankers, selling their produce on their own. Due to this development,

they improved their bargaining power at the household and social fronts.

Tripathy (2004) revealed that the success of the economic activities taken up by the self-employed persons largely influenced the

poor people. The poor people were motivated by the decision-making process and broader financial base of the groups in their

village. They were expressed by the assets created by the group members and realized that group approach through SHGs is the

only means to achieve desired goals.





DEMOGRAPHIC PROFILE OF RESPONDENTS

Andhra Pradesh is the leading state in the country in implementing the SHG Bank Linkage Program. In Andhra Pradesh, the

researchers have chosen Rangareddy District for convenience sampling. Five mandals Viz., Chevella, Hayath Nagar,

Ibrahimpatnam, Medchal and Tandur were selected randomly for the study. The following is a brief description of the mandals

taken for the study.

Chevella: Chevella is located at 60 Kms from Hyderabad and has 30 panchayats in its geographical area. It is a

shopping center for the nearby areas and active in SHG movement. There are 43 Village Organizations and Malkapur

division of Chevella is selected for the study, which consists of 83 SHGs. Among 83 SHGs registered, primary data

from 20 SHGs was gathered.

Hayath Nagar: Hayath Nagar is another mandal situated 20 Kms from Hyderabad in Rangareddy district, which is a

rapidly developing suburban area with 27 panchayats. There are 36 Village Organizations in this mandal and Kuntloor I

area is considered for the research where there are 65 registered SHGs and primary data was gathered from 20 SHGs

selected randomly.

Ibrahimpatnam: Ibrahimpatnam is located 50 Kms from the city of Hyderabad and has 22-gram panchayats in its

location. There are 30 Village Organizations in this mandal and Pocharam Village Organization is selected for the

study, which consists of 51 SHGs.

Medchal: Medchal mandal is 45 Kms from the city of Hyderabad with 27 village panchayats as constituents. There are

45 Village Organization in the mandal and Medchal-6 is taken for the research, where there are 65 SHGs.

Tandur: Tandur is town located at 125 Kms from the City of Hyderabad with 32 villages in the town. It is famous for

the stone and quarries are more in the town. There are 39 Village Organizations in the town and Narayanpur Village

Organization is selected for the study with 39 SHGs.

The size of the sample is decided as 1150 after considering the results of the pilot study conducted in Hayath Nagar mandal. These

1150 members belong to 100 groups of the five mandals taken for the study.

The socio economic profile of the respondents reveals that majority of the respondents are in the age group of 30-35years

representing 43.3 per cent of the sample followed by 25-30years and a minority of the respondents i.e., 8.7 per cent are above the

age of 50years. It has been observed in the Focus Group Discussion that the respondents with more than 50 years of age are either

widows or single members or left alones of the family. Yet, the drive to join in groups and enthusiasm to meet their livelihood

requirements is an appreciable factor. Increased awareness on the benefits of joining groups is also encouraging the individuals to

join the groups.

Majority of the groups taken for the study i.e., 45 per cent are having more than 4years of existence. In fact, it is observed that

groups with longer periods of existence have more affiliations. Leadership and other group factors are significantly influencing the

performance of the groups, with long duration of existence. The age of the group indicates its consistent efforts to improve

constantly through group formation and group working.

Of all the groups taken for the study, majority of the groups i.e., 43 per cent have 13-15 members, followed by 28 per cent groups

having 16-18 members. By this observation, the ideal group size preferred by the respondents can be assumed as 13-15. To be

more specific, the respondents opined that ideal size of the group is 15 and it is noted that initially majority of the groups are

starting with 10 members and increasing their size. In some of the groups, dropouts are also observed due to a number of reasons

like untimely payment, improper thrift discipline and other irregularities.

LEADERSHIP

Leadership is the key factor taken for the study. To study the effectiveness of leadership the following elements were considered:

Effectiveness and Capability of Leader,

Economic and Social Benefits due to the Leader,

Accessibility and reachability of Leader,

Pivotal Role in wealth creation,

Guidance by the Leader,

Representation of group interests,

Maintenance of accounts by the leader,





Financial transparency and social justice by the leader,

Support during Crisis.

DATA ANALYSIS OF FACTORS TAKEN FOR STUDY

The following is the presentation of the data analysis of the factors taken for the study.

Table-1: Opinions of Respondents regarding the Effectiveness of Leadership

Scale Variables Number of Respondents Percentage

Strongly Agree 722 62.8

Agree 383 33.3

Neutral 20 1.7

Disagree 15 1.3

Strongly Disagree 10 0.9

Total 1150 100


As shown in the above table as well as in the graph, majority of the respondents are of the opinion that their leader is effective

which counts to 62.8 percent of the total respondents, followed by 33.3 per cent agreed to the same. 1.7 percent felt that they could

not say anything and 1.3 percent disagree that their leader is effective and a minimum of 0.9 percent opined that their leader is not

effective. The same is represented through a bar diagram above.

Table-2: Opinions of Respondents regarding the Economic and Social Benefits



Agree 370 32.1

Neutral 18 1.6

Disagree 16 1.4


Total 1150 100


Regarding the economic and social benefits received due to their leader also majority of the respondents said that they strongly

agree the leaders are important for the benefits, contributing to 64.1 per cent of the total respondents. 32.1 per cent agreed to the

same, 1.6 per cent are neutral to this question, whereas 1.4 per cent disagreed and 0.8 per cent strongly disagreed that there are

economic and social benefits.

Table-3: Opinions of Respondents Regarding the Accessibility



Agree 436 37.9

Neutral 116 10.1

Disagree 3 0.3

Strongly Disagree 0 0

Total 1150 100


The above table shows the data related to accessibility of their leader. Majority of the respondents felt that the leader is accessible

to the group members representing 51.7 per cent of the sample, 37.9 per cent of the sample felt that they agree, 10.1 per cent of the

respondents felt that they could not say, while 0.3 per cent of the respondents disagreed to the statement.





Table-4: Opinions of Respondents regarding the Pivotal Role of Leader



Agree 355 30.8

Neutral 259 22.5

Disagree 117 10.2


Total 1150 100


The responses of the sample towards the pivotal role played by the group leader are represented above. There are different

opinions expressed by the group members in this regard. Majority of the respondents corresponding to 36.2 per cent of the sample

said that they strongly agree to the statement, closely followed by 30.8 per cent agreeing to the statement, 22.5 per cent are

neutral, 10.2 per cent of the sample disagreed and 0.3 per cent of the respondents said that they don’t feel that the leader is playing

a pivotal role.

Table-5: Opinions of Respondents regarding the Guidance by the Leader



Agree 89 7.7

Neutral 223 19.4

Disagree 63 5.5


Total 1150 100


Majority of the respondents i.e., 61.9 per cent strongly agreed that they are receiving guidance by their leader, 7.7 per cent agreed

to that, whereas 19.4 per cent were not able to say anything, 5.5 per cent disagreed and the same percentage strongly disagreed

saying that they were not receiving any guidance from the leader.

Table-6: Opinions of Respondents regarding the Representation of Group Interests



Agree 506 44.0

Neutral 73 6.3

Disagree 124 10.8


Total 1150 100


Majority of the respondents corresponding to 44 per cent of the sample agreed that their leader is representing group interests,

23.3 per cent strongly agreed to that, 15.6 per cent strongly disagreed saying that their leader is not representing them properly,

108 per cent said that they disagree to the statement and 6.3 per cent are neutral to it.

Table-7: Opinions of Respondents regarding the Maintenance of Accounts



Agree 374 32.4

Neutral 179 15.6

Disagree 26 2.3

Strongly Disagree 0 0

Total 1150 100






The above table shows the responses of the sample on maintenance of accounts. Majority of the respondents representing 49.7 per

cent of the sample said that the leader maintains accounts, 32.4 per cent agreed to the same, 15.6 per cent are neutral, 2.3 per cent

disagreed to the statement while none of the respondents has strongly disagreed with the statement.

Table-8: Opinions of Respondents regarding the Financial Transparency



Agree 525 45.7

Neutral 214 18.6

Disagree 65 5.7


Total 1150 100


Majority of the respondents corresponding to 45.7 per cent of the total respondents agreed that transparency is maintained in

financial matters, followed by 29.7 per cent strongly agreeing to the same, 18.6 per cent are neutral to this, 5.7 per cent disagreed

and 0.3 per cent strongly disagreed to the transparency maintained by the leader.

Table-9: Opinions of Respondents regarding the Support by the Leader



Agree 588 51.5

Neutral 143 12.4

Disagree 0 0


Total 1150 100


The above table and graph show the opinions of the respondents related to the support extended by the leader to the group

members. 51.5 percent of the respondents agreed that they are receiving support from their leader, 36.2 percent strongly agreed to

the same, 12.4 percent are neutral, 0.3 percent stated that they are not receiving any support.

Table-10: Mean and Standard Deviations of Factors of Leadership

Factors Number of

Respondents

Minimum Score

given by

Respondents

Maximum Score

given by

Respondents

Mean Standard

Deviation

Effective Leadership 1150 4 5 4.65 .477

Economic Social Benefits 1150 4 5 4.67 .469

Accessibility 1150 3 5 4.42 .668

Pivotal Role 1150 2 5 3.94 .995

Guidance 1150 1 5 4.15 1.226

Representation 1150 1 5 3.49 1.366

Accounts Maintenance 1150 2 5 4.30 .810

Financial Transparency 1150 2 5 4.00 .839

Support 1150 3 5 4.24 .657

Average score 4.232 .938


The Mean and standard deviations of the factors related to Leadership are tabulated and presented above with an indication of

total number of respondents, the minimum and maximum scores awarded by the respondents to the mentioned factors. The least

score is 1 and the maximum score is 5 on a five-point scale. The higher the mean the higher is considered the significance of the

factor and the lower the standard deviation, the better is the significance of the factor.

In the above data, the economic and social benefits of the members got the score of 4.67 against the maximum score of 5

indicating a significant impact of the factor, while representation by the leader got the minimum score of 3.49 against 5. When

standard deviation is considered incidentally economic and social benefits got the least score of .469 while representation got the





maximum score of 1.366 supporting the results of mean scores. The average mean of all the factors taken together is 4.232 and

average standard deviation is .938.

SUMMARY AND FINDINGS

As mentioned in the earlier chapters, the study of Self Help Groups is always interesting to the researchers and so does the present

study. Self Help Groups of the country are leading the program of micro finance throughout the world. The Indian Self Help

Groups are observed to be more dynamic and more cohesive inspite of the barriers of illiteracy and are proved excellent media of

social change. The following are some observations of the study:

Regarding the guidance provided by the leader, the respondents were very positive in their responses, said that their leaders were

active, and were always guiding them except in a few cases (5.5 per cent of the total sample) where the respondents were not

happy with the guidance provided by the leaders. When asked about the rotation of leadership, majority of the members opposed

saying that rotation will not vest responsibility on any of the leader, while a minimum were of the opinion that others may also be

given a chance of representing the group. Majority of the sample agreed that their leader is representing group interests before the

officials of banks, NGOs and other agencies as and when required and were good at communicating their difficulties also.

Majority of the groups opined that Banks and NGOs should promote them in getting more access to finance. The bank loans are

given to the groups, which have active leaders, and others are lagging behind in this aspect. There are certain groups, which have

active leaders still it is taking them more time to get the bank loan, as the leaders are not able to converse with the officials due to

illiteracy. To come out of this hurdle the groups can be given some literacy training also, which can improve their communication

abilities and self-confidence levels.

SCOPE FOR FURTHER RESEARCH

The present research was based on only Leadership influence on development of the groups. The behaviour of groups before

availing the loans and their repayment behaviour can also be studied to assess the performance of the groups. The study was

focused on five mandals of Rangareddy district only and other mandals can be studied for further research.

The scope can also be extended to other important indicators of performance like the nature of income generating activities,

spending patterns, improvement in the standard of living of the groups etc.

REFERENCES

1. Grace, Coyle. (1947). Group Experiences and Democratic Values, pp. 65. New York: Women’s Press.

2. Parida. (2011). Women Entrepreneurs in Rural Trade, pp. 50-56. New Delhi: Mangalam Publishers and Distributors.

3. K., Rajareddy. (2012). Self Help Groups in India: A study on Quality and Sustainability. APMAS, pp. 22-29.

4. Mansuri, B. D. (2011, September). Rural Women Entrepreneurs in India: Opportunities and Challenges. Kurukshetra,

pp. 17-19.

5. Malyadri, P. (2011, April). Union Budget 2011-12: Positive vibes for Micro Finance. Kurukshetra, pp. 19-22.

6. Meenai, Zubair. (2003). Empowering Rural Women: an approach to Empowering Women through Credit Based

SHGs, pp. 152-165. New Delhi: Aakar Books.

7. Sharma, A. (2011, September). Women Empowerment: milestones and challenges. Kurukshetra, pp. 10-12.

8. Srinivasan, G. (2011, April). Rural Development: the focus, Budget 2011-12. Kurukshetra, pp. 15-17.

9. (2011). A Report on the Status of Micro Finance in Andhra Pradesh. Hyderabad, Andhra Pradesh: Society for

Elimination of Rural Poverty.

10. Suman, Kalyan Chowdary. (2012). Women empowerment through Entrepreneurship. New Delhi: Avon Publications.

11. Thomas, Ditcher, & Harper, Malcolm. (2007). What’s wrong with Microfinance, pp. 10-12. Jaipur: Rawat Booksellers.

12. Trecker, Harleigh B. (1948). Social Group Work Principles and Practices, pp. 56-59. New York: Women’s Press.





13. Wilson, Gertrude, & Gladys, Ryland. (1949). Social Group Work Practice, pp. 63-68. Boston: Houghton Mifflin Co.

14. World Human Development Index 2012. Retrieved on 24 February 2012, from http://www.hdrstats.undp.org.in

15. Retrieved on 21 December 2012, from www.ikp.serp.gov.in accessed on 21st December, 2012.

16. Retrieved from http://www.academia.edu/10718758/Leadership_and_Motivation

17. Retrieved from http://www.etd.uasd.edu/ft/th8424.pdf

18. Retrieved from http://sukimadurai.blogspot.com/

19. Retrieved from https://prezi.com/9aomsf2dwwnf/motivation-dynamics-in-leadership/

20. Retrieved from http://eprints.uni-mysore.ac.in/15222/

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http://www.hdrstats.undp.org.in/

http://www.ikp.serp.gov.in/

http://www.academia.edu/10718758/Leadership_and_Motivation

http://www.etd.uasd.edu/ft/th8424.pdf

http://sukimadurai.blogspot.com/

https://prezi.com/9aomsf2dwwnf/motivation-dynamics-in-leadership/

http://eprints.uni-mysore.ac.in/15222/










NATIONAL RURAL HEALTH MISSION (NRHM): A BIRDS EYE VIEW

Ashish Upadhyaya23 Dr. Simranjeet Kaur Sandhar24

ABSTRACT

National Rural Health Mission or NRHM as it could be established based on its mission documents was a Government of

India intervention to improve the public health sector of the country. The aim of the paper is to explore the basic structure of

the NHRM scheme and to understand it from various perspectives. The government of India launched National Rural Health

Mission (NRHM). It is found that the health systems in our country show a contrite movement. The skill and dexterity of

our private medical sector are booming, with medical tourism being on a constant rise and India being favored as a

destination of medical facilities by people abroad. The aim of the paper is to understand this very aspect.

KEYWORDS

NRHM Schemes, Medical Facilities, Contrite Movement etc.

INTRODUCTION

There is no universally accepted definition of health; In fact, there have been many definitions in vogue. To the laymen, health

means a sound mind in a sound body, in a sound family, in a conducive environment. The Health Survey and Development

Committee (1946) correctly points out that “the term health implies more than absence of sickness in the individual and indicates

a state of symphonic functioning of the body and mind in relation to his physical and social environment, so as to enable him to

enjoy life to the fullest possible extent and to reach his maximum level of industrious capacity”.

The National Rural Health Mission (NRHM) is a proposal embarked on by the government of India to undertake the health

needs of underserved rural areas. Commenced in April 2005 by the Prime Minister of the country, NRHM was originally allotted

the work of meeting the needs of 18 health states that were identified to be low in the health indicators. The Union Health &

Family Welfare Ministry chaired by Dr. Anbumani Ramadoss through its decision on 1st May 2013, has allowed the

commencement of National Urban Health Mission (NUHM) as a Sub-mission of an all-inclusive National Health Mission (NHM),

with National Rural Health mission (NRHM) being the other Sub-mission of National Health Mission.

Figure-1

Sources: https://2.bp.blogspot.com/-

dDy1ixqAAl8/T9oxpuUAPDI/AAAAAAAAAJo/bcV5_4tg5D8/s1600/NRHM+Approaches.jpg

23Research Scholar, Devi Ahilya University, Madhya Pradesh, India, [email protected] 24Associate Professor, Indore Institute of Science and Technology, Madhya Pradesh, India, [email protected]

https://2.bp.blogspot.com/-dDy1ixqAAl8/T9oxpuUAPDI/AAAAAAAAAJo/bcV5_4tg5D8/s1600/NRHM+Approaches.jpg

https://2.bp.blogspot.com/-dDy1ixqAAl8/T9oxpuUAPDI/AAAAAAAAAJo/bcV5_4tg5D8/s1600/NRHM+Approaches.jpg








There is credibly high-quality literature in the subject matter of public health in India. Many books, papers and reports have been

published by national and international organizations like ICMR, WHO, UNICEF, UNDP and World Bank.

A paper on Public Management and Indispensable Public Functions (2005), published by World Bank offer an overview of how

different approaches to progress public sector management recount to essential public health functions such as disease

surveillance, health education, monitoring and evaluation, work force development and health policy development. Managerial

autonomy is significant for promoting adjustment and modernization. Intensification of hierarchical responsibility within public

health system is vital and needs to not only change in the capability, autonomy and performance of service managers, but also

necessitate change in monitoring systems.

An additional paper published by Public Health Foundation of India (2010), compact with the quality in health care in conditions

of safety, efficiency, timelines, responsiveness, equity, and human and physical resources. The study is based on result assessed

over time in secure delivery and maternal and neonatal mortality. The study was approved for Malaysia, India and Ethiopia. In

case of India, the study recognizes the prevalence of high amount of maternal and neonatal deaths and low institutional delivery.

Further, it highlights issues such as poor access, poor infrastructure and facilities, ineffective treatment due to poor skills,

dishonesty and lack of responsiveness as main problems.

Health system has to deal with issues relating to organization. This comprises potentially new health systems arranged with

measured importance to quality and performance. Information management is enticing stakeholders with the explosion of

information. The lowest income groups in India get the smallest share of subsidies for curative health care. To decrease inequity

and make services pro-poor, programs and facilities must be restructured and made easily accessible for poor. A demand-driven

move toward availability of health services requires enhancement in availability of essential services, accountability mechanisms

and empowerment of clients.

Leadership in health care management has to acclimatize to changes in terms of style, process and organization. With change from

feudalistic and paternalistic society towards knowledge society, the leader is expected, not unavoidably to have all right answers

but all right questions. People and technology management will be significant issues. Leaders of future should think of putting

together internal processes and systems to meet external needs. Organizational structures will move from pyramidal to flat

structures within which the locus of control will continually shift. With rapid changes in information technology, leaders of future

should perceive change; conceive change and deliver change, thus leading change from the front.

OBJECTIVE OF STUDY

The aim of the paper is to explore the basic structure of the NHRM scheme and to understand it from various perspectives. The

government of India launched National Rural Health Mission (NRHM) in order to realize and achieve the objective of a timely,

affordable and competent healthcare for each citizen. The private medical sector is enjoying an unprecedented boom, with medical

tourism being on a rise constantly and India being favored as a destination of medical facilities by people abroad. The aim of the

paper is to understand this very aspect.


The paper is a result of an ample literature review that tracks the substance of NHRM and its basic concepts in the Indian scenario.

The study is conceptual in nature where past researches and text data are used to validate the concepts and to put emphasis upon

its importance. Various journals and books are used as support system for the analysis of the paper. Observational analysis is used

as a tool for data analysis.

DISCUSSION

Salient features of NHRM

Innovation in Human Resource Management Encourage right of entry to enhanced healthcare at household level throughout the Accredited Social Health Activist

(ASHA). ASHA would perform as a link among the Auxiliary Nurse and the village Midwives and be answerable to the

Panchayat. ASHA would make trouble-free the implementation of the Village Health Plan along with Anganwadi

worker, ANM, functionaries of other Departments, and Self Help Group members, below the leadership of the Village

Health Committee of the Panchayat.





Reinforcement of Public Health Delivery in India New-fangled notion of Indian Public Health Standards begins. They are set of principles imagined to perk up the value

of health care services in the country under the National Rural Health Mission.

Strengthening PHCs Mission aims at strengthening of PHC for delivery of quality anticipatory, primitive, healing, and decision-making and

Outreach services through sufficient and continuous supply of essential quality drugs and equipment’s (including

Supply of Auto Disabled Syringes for immunization) to PHCs. Stipulation of 24 hour service in 50% .PHCs by

addressing shortage of doctors, especially in high focus States, through mainstreaming AYUSH manpower.

Strengthen CHCs Infrastructure strengthening of CHCs by espousal and performance execution of IPHS standards which support

Promotion of Stakeholder Committees (Rogi Kalyan Samitis) for hospital management and developing standards of

services and costs in hospital care.

Decentralized Planning This includes “District Health Mission” at the District level and the “State Health Mission” at the state level. District

Health Plan would be a signal of synergy between Village Health Plans and State and National level priorities for

Health, Water Supply, Sanitation and Nutrition. It also comprises involvement of PRIs in planning process to get better

right of entry of facilities.

Strengthening Disease Control Mechanisms National Disease Control Programmes for Malaria, TB, Kala Azar, Filaria, Blindness & Iodine Deficiency and

Integrated Disease Surveillance Programme have been integrated under the Mission. For improved programme delivery,

and new Initiatives have been launched for control of Non Communicable Diseases.

CONCLUSION

The NRHM is an overarching programme that attempts to consolidate all existing disease control programmes under a collective

umbrella while at the same time improving the infrastructure and capability of the healthcare system in the country. Monitoring

the use of the substantial funds involved also needs inter-departmental coalition and establishment of new systems. Innovative

organisations such as the Rogi Kalyan Samitis are yet to meet their full potential and decentralised planning has not fully taken

off. The concern that confronted facilities and services, like lack of synergy with other departments are an offshoot of the lack of

purposeful planning and effective monitoring – activities requiring committed groundwork so as to help determine health issues in

conformity with local needs. Steady and persuasive direction and leadership from the Ministry would be necessary for carrying

out the programme’s activities by the States in both effective and speedy manner. However, the Mission is the only step forward

and with superior State participation and effective monitoring of the fund usage, has the potential to transform health delivery

system in the country.

REFERENCES

1. Goel, S. L. (2010). Primary/Rural Health Care System and Hospital Administration. New Delhi: Deep & Deep

Publications Private Limited.

2. (2010). Public Health Foundation of India.

3. Bradley, H Elizabeth, Sarah, Pallas, Chhitj, Bashyal, Leslie, Curry, & Peter, Berman. (2010). Developing Strategies for

Improving Health Care Delivery: A User’s Guide to Concepts, Determinants, Measurement, and Intervention Design

by World Bank.

4. Gill, Kaveri. (2009). A Primary Evaluation of Service Delivery under the National Rural Health Mission: Findings

from study in Andhra Pradesh, Uttar Pradesh, Bihar and Rajasthan – Planning Commission of India (Working

Paper 1/2009 – PEO).

5. Ramani, K.V., Mavalankar, Dileep, & Govil, Dipti. (2008). Strategic Issues and Challenges in Health Management.

New Delhi: SAGE Publications India Private Limited.

6. Khaleghian, & Monica, Das Gupta. (2005). Public Management and Essential Public Health Functions. World Bank.





7. Mahal, Ajay, J., Singh, F., Afridi, V., Lamba, A., Lumber, & V., Selvaraju. (2002). Who Benefits from Public Sector

Spending in India? New Delhi: National Council of Applied Economic Research.

8. Navaneetham, K., & A., Dharmalinga. Utilization of Maternal Health Care Services in Southern India – Asia Meta

centre of Population and Sustainable Development Analysis. Singapore: Institute of Asian Research.

9. Clar, Chrisitine, & Bilal, Iqbal Avan. Evolution of the Concept of Quality of Care With Respect to Clean Delivery in

Health System in High, Middle and Low-Income Countries.

10. Fleming, Fallon, L Jr., & Eric, J. Zgodzinski. Essentials of Public Health Management Jones and Bartlett Learning.

ISBN-13: 978 1-4496-1896-4.

11. Gerth, H. H., & C., W. Mills- Max Weber. (1958). Essays in Sociology. Fair Lawn, New Oxford University Press.


13. Retrieved from http://www.ias100.in/basix_archive_details.php?id=282

14. Retrieved from http://gsupsc.blogspot.com/2013/04/national-rural-health-mission.html

15. Retrieved from http://socioeconomyataglance.blogspot.com/2012/09/national-rural-health-mission.html

16. Retrieved from http://health.uk.gov.in/pages/display/69-plan-of-action

17. Retrieved from http://www.upnrhm.gov.in/site-files/Mission-Document.pdf

18. Retrieved from https://en.wikipedia.org/wiki/National_Rural_Health_Mission

19. Retrieved from http://www.nrhm.gov.in/nhm/nrhm.html

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RURAL MARKETING: CHALLENGES AND OPPORTUNITIES

WITH SPECIAL REFERENCE TO INDIA

Dr. Rajesh K. Mahajan25

ABSTRACT

Across the globe, there are approximately four billion people who live in extreme poverty. The marketing firms, all around are

painstakingly struggling to convert these people in to their potential customers. Business visionaries have argued that. These

people dubbed the “Base of the Pyramid,” and make a good base for a big market. Words biggest corporations have tried to

address the basis needs of the rural people by playing everything in sales from clear water to electricity, Form FMCG to

consumer durables. This present paper discusses the challenges of rural marketing and the opportunities observing the

prospective rural market. It also deals with the participation of rural India and the shift of Multi-National corporations low

aids the Indian rural market, vast marketing opportunities offers a positive effect on all the participants. Keeping in mind

these factors, the Indian rural market is observed as an emerging, high potential market across the world.

KEYWORDS

Potential, MNC, Opportunities, FMCG, Marketing etc.

INTRODUCTION

The marketing companies, all over the world usually search a homogeneous mass and believe that the rural consumer have no

diversity. The homogeneous mass as found out by the marketing companies has simple dealings suiting the companies’ point of

view. It is a general view that market are not found but made especially in context of Indian rural market of lately, the importance

and value of rural Indian market has increased with the increase in economy thus resulting into increase in purchasing power of

rural communities. However, it should be noted that rural areas differ widely and the response of the rural consumers. The concept

of Multinational companies work only in developed nations. There has been few problems in marketing in rural areas since it also

encapsulates the problems of power purchasing and communication and physical distribution in difficulties. There has been

offered substantial development programs in agriculture, health, education, electrification etc. The sensitive development in such

sections has led to uplifted living standards of rural population, which encompasses almost 70% of countries population. The shift

is marked net only in income but also in predication and consumption. In this context, the marketing in rural sector has become an

important strategic goal in marketing but unfortunately, very little attention has been paid towards this sector. The two facets of

consumer rural marketing that constitutes the new center of rural development activities are production and marketing.

RURAL MARKETS IN INDIA

Any markets existing in area with less than 10,000 people can be designated as rural market. It is rather planning and

implementation of marketing function for the rural area. A live may marketing process digests good and Services form urban to

rural sectors and vie-verse. The Indian rural market guesses a large geographical land. Indian market is divided into rural and

urban market but Indian economy more or less depends on the rural demands. More than 70% of Indian population resides in

villages. Many big companies have felt the needs to set up their market in rural areas since true market leadership lies in trapping

the rural consumers. However, this sector faces many problems as the awareness is less amongst rural people hence the

consumerism also remains low. In addition, some areas face economic empowerment, education and health problem too.

IMPACT OF RURAL MARKETING

Indian Market has an urban marketing mindset and with such mindset, rural marketing is impossible. Indian Rural marketing has

emerged as an important discipline service them. The rural markets tend to contribute more share of profit than is urban

counterparts because of a high demand of consumption. These markets reach out to their customers, understand their needs and

navigate the supply of the goods accordingly. It is generally believed that in rural market, agriculture based marketing has larger

scope.

Rural market growth has increased five times more than the urban market. With a sudden shift in purchasing power on rural

communities, the rural markets have been able to acquire a good set up in countries like India and China.

25Principal, JC DAV College, Punjab, India, [email protected]






The rural area in India is highly consuming industrial and urban manufactured goods because of the green and white revolution.

One in every rural household owns a mobile phone across the countries, electric fans; TV Set etc., have been in good demand

especially in rural market. Manufactured or processed good and services are being delivered to the rural consumer via Rural

Marketing. India and China happens to be a good great market for marketing developed goods. Such factors transform enormously

the marketers approach.

CHALLENGES FACED IN RURAL MARKET

Many Challenges are faced by the rural market as its features some of the characteristics like illiteracy, distant markets, potential

rail and road transportation etc. It also faces the pressure of distributing products and services amongst rural consumer while

apprehending their behavior. Socio-cultural factors, languages, lack of infrastructural facilities also adds to the problem of rural

market.

The distance is irreproachable in rural areas, service it’s so wide and distant. Each segment differs from the other. Each state,

district, region, differs from the other. Indian however has diverse culture and traditions hence differentiating each area form the

other.

To discern rural India is a difficult task. There are diverse spirits, feelings, shyness etc. Rural people can very well sense the tact

us and cheating of sales man, and hence maintain a healthy distance from them.

Salesman or People employed in marketing sector are not fully aware of the real needs of the rural consumer. They design

incorrect strategy of delivering goods and services in rural villages. Well conversant salesman in rural language is hard to find.

Though need of the market is studied from tope institutions from abroad but they fail to know the needs of the rural people and a

gap is left between there knowledge and reality. This is the reason of failure of many products in rural market.

Transportations and distribution facilities are proper infrastructure is the major requirement in this sector. Many villages are not

connected to rail transport. Subservices roads, poor connectivity, and the emerging intermediaries lead to greater losses.

Rural people opts for traditional and simple living standards they find it difficult to be adjusted to the new ones. Even educated

rich farmers stay away from branded products. Rural Consumers continuously buy things and are slow at decision-making they

buy the product after trying and testing.

The demands is not stable and regular in this area. Since the rural economy is agriculture based and agriculture depends upon

monsoon.

OPPORTUNITIES FOR MARKETRS

Myriad opportunities are being offered by the Indian rural market with its vast size and demands. Even the MNC’s fail to offer

such great opportunities to rural consumers.

Brands get more publicity and attract a large no. of consumers. HLL figures out that out of 5 lakhs villages in India, only one lakh

has been taped so far. It is a great indication of potential rural market.

The economy situations have been improving with various programs in rural areas. The increased income of absolute value.

The accessibility to the rural area has been made possible despite now development of the road network. This had made supply of

the goods and products to rural area much easy.

There has arrived a saturation point in the urban market and it has made it difficult for the market to reach out to new companies.

Thus, these companies are now targeting the rural market in search of greener postures.

CONCLUSION

The concept of rural marketing in India has just initiated. It has faced many challenges such as the strategies and plans devised to

deliver and satisfy the rural consumer and the dynamic of rural market of course. There are lots of potential backed in the rural

market like any other economy. However, along with this, this market faces several difficulty levels to achieve the targets while

exploring the market.

The placement of the rural market has been done and is seen as the futures of Indian markets. A lot more competitions has arisen

in the urban field, which has made it saturated. Therefore, the marketers need to explore the needs and demands of the rural





customers before plunging into the market. The size of the rural market is fast expanding and offers a great scope for future.

Markets are made, and not found seems an opt and befitting phrase in context of the Indian Rural Markets.

REFERENCES

1. Pardeep, Kashyap, & Siddharth, Raut. (2006). The Rural Marketing Book. Biztantra Publication.

2. C., S. G. Krishnamacharyulu, & Lalitha, Ramakrishnan. Rural Marketing: Text and Case (2nd Edition). New Delhi:

Pearson Education.

3. Kashyap, P., & S., Raut. (2006). The Rural Marketing Book. New Delhi. Biztantra Publication.

4. Nabi, M. K., & K., C. Raut. (1995). Problem and Imperatives of Rural Marketing in India. Indian Journal of

Marketing, February-March: 16-24.

5. Rajagopal. (1988). Rural Marketing: Development, Policy, Planning & Practice. Jaipur: Rawat Publications.

6. Rao, K. L. K., & R., G. Target. (1985). Rural Marketing: A development approach. Vikalpa, 10(3), 315-326.

7. Velayudhan, S. K. (2002). Rural Marketing: Targeting the Non-urban Consumers. New Delhi: Response Book.

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MARKETING STRATEGIES IN HANDICRAFTS IN INDIA

P. D. M. Raju26

ABSTRACT

India is one of the important Handicrafts in the entire world. It is highly labour oriented and is a cottage oldest and

traditional cottage industry in India. It is spread in every part of the country covering the rural and urban areas. The artisans

of this industry work on part time and fulltime basis. It provides employment opportunities to a large section of people

belonging to the weaker sections of the society. Indian artisans are facing cutthroat competition from the artisans of other

countries due to liberalization, privatization and globalization. The modern marketing techniques and methods adopted helps

the industry in solving their communication problems. Indian artisans will have an edge over that of other developing

countries of the world by updating its communication channel. This problem aims at prevailing an overview of the Indian craft

industry in general and the markets and the constrains behind the process of products reaching the end consumer in

particular.

KEYWORDS

Fama’s Ratio, Mutual Funds, Sharpe Ratio, Treynor’s Ratio etc.

INTRODUCTION

Since the down of civilization man is toiling art to know something about its nature. An unknown is always an enigma to human

beings. Man`s efforts to capture nature is not materialized science long. Nature provides everything to us the advantage of the

available natural resources people are creating safe and comfort zones. India lives in its villages. Man`s started living with fellow

human beings with the policy of live and let live.

In India different classes of people selected different professions as per their convenience and they were identified as per their

professions such as wavers, goldsmith, blacksmith, carpenters, barbers, fisherman, traders, priest, and so on. All this professions

have become hereditary and transfer by tradition from one generation to another generation. The raw materials produce from

primary sources were used to manufacture handicrafts. There was now interdependence between agriculture and handmade

industry. There was contentment among the people and lived happily in this materialistic world. With the advancement of

technology, their ideas proved the way to produce such goods and services, which were attracted to human eyes.

India has rich craft tradition distinguished by aesthetics and multi furious history of art. Indian crafts man and patterns were

mostly depictions of everyday archeological studies have revealed that during a period of manufacture for a given handicraft. It

can be deciphered from its productions techniques. From the times of cosmos the existence of crafts was there and they are

sometimes they serve purpose of exotic life. The iron pillars of emperor Asoka`s time is the splendid master pieces of art.

FORMS OF INDIAN HANDICRAFTS

There are different forms of handicrafts, which are having religious influence on Indian people. There is in separable affinity

between religion and Indian way of living from cradle to cemetery every human being is identified with some religion, caste,

creed and community. Indian society is influenced by various forms and religious influence will always having a lasting impact on

Indian contemporary society and its individuals even though Indian society is improvising the western culture from time to time.

DEFINITION

The term “HANDICRAFT” encompasses a wide range of artifacts. In the informal sector, which includes handicrafts has been

described by the International Labor Organization (ILO) as a part of economic activity characterized by certain features like

reliance on local available resources and skills, family ownership, traditional technology, skills generally acquired outside the

formal school system, un regulated and competitive markets.

IMPORTANCE OF STUDY

There are different types of handicrafts in our country. It is a development depends on the socio cultural and economic factors.

Even today, Indian artisans are depending on their traditional business. In rural areas, they depend more on intermediary. They are

exploiting the artisans by purchasing their products at lower prices and sometimes they even provide funds to the artisans at very

26Principal, Prabhas Degree & P.G. College, Andhra Pradesh, India, [email protected]






high rates of interest. As a result artisans with creative ability are remind in poor economic conditions ware as the middle man are

becoming financially sound at their cost . As result the traditional craftsman are migrating to other sectors living behind their

traditional profession. India has past history of handicrafts and it is up to us to revive this noble craftsmanship, which depends

mainly on the creativity and imaginative thinking of the artisans.

SURVEY OF LITERATURE

During the last six decades several studies were conducted, explore the problems and prospects of rural industries in general and

handicrafts in particular. Rural India is connected with handicrafts and the lifeline. The perplexing problem before the parties in

power is to provide employment to those who are in employable conditions. However, in a populated country like India, providing

employment is a herculean task and more resources are required. Instead of depending on Government, many people prefer to

create self-employment by depending on handicrafts. This is the primitive profession whose traces can be found in the Vedic

literature. The Rig Veda literature being religion based describes mainly such objects and crafts were directly or indirectly

associated with religious rituals. It was evident that artisans used to make pottery, Weaving and Woodcraft etc.

Upadhyay (1973) made detailed review on the Vedas and Upanishads and made comments on the prodigious contributions of

village crafts to India`s external trade. Several studies suggested and witnessed that there is lot of affinity between the

handicrafts and ancient Indian history. (KARVE 1950, Kamala Devi 1958, Aruna 1959 And Khosla 1959). All these

contributors have recorded that India has an extremely rich craft tradition distinguished by great aesthetics and multifarious

art history.

Steps were also made to identify the prominence of rural crafts in the socio – economic development of rural communities to

whom the production of this industry belongs. Mehta (1958) was of the opinion that these rural artisan units are part of rural

economy with an object of providing employment to youth. several other contributors such as Bedi (1958), Rostan (1972),

Reva (1965), Myrdal (1968), Rao (1970), Peter (1971), Jaya Prakash (1972) Deshpande (1984) Streefkerk (1985) and Rao

(1986) were of the opinion that the contribution of rural industries including handicrafts to the social and economic sectors

cannot be undermined when compared to modern industry.

MARKETING TRENDS

For purpose of E-Marketing is to exploit the internet and other methods of electronic communication to penetrate into target

markets. The internet is also helping the traditional methods of communicating with customers. The main benefits of E-marketing

are delivery of large amounts of information in a user friendly way. Brand building is the latest available benefit, which was made

possible due to the availability of broadband connections. Two-way interaction between the supplier’s customers and between

customers and other likeminded customers. These interactions are applied during the various stages of customer journey. Cost

effectiveness in transferring information and products on sale cheaply at short notice to the prospective consumers, through the

web, email, and Mobiles.

Social media provides an opportunity to interact among various people in which they create share and exchange information.

Social media depends on Mobile and web based technologies to create highly interactive platforms. It introduces substantial

changes to communication between organizations, communities and individuals. Social media is differentiated from traditional

media in many aspects such as quality, frequency, usability and performance. Internet users spend more time with social media

sites than others at the same time the total time spend on social media `US` across pc and mobile devices increased by 37% to 121

billion minutes in the year 2012 when compared to 88 billion minutes in the year 2011. Social media includes negatives internet

forums web block, social blocks, micro blocking, wikis, social networks, pictures, video, social Book making etc. They provide

the user with different interaction possibilities ranging from simple chart to multi video conferences and exchange of email

messages to the participation in blocks and so on the web site is no longer a static page but a dynamic platform which gives scope

to the users the generation of content and the possibility of sharing their own experiences. With billions of customers, available

firms are coming up with new approaches to promote their brands and products online in a big way.

MARKTING STRATEGIES IN HANDICRFT INDUSTRY

Marketing involves large number of activates including marketing research, product development, distribution, pricing personal

selling, sales promotion, branding etc. Marketing activates are compared with other activates to sense, serve and satisfy customer

needs while meeting the goals of the organization. Handicrafts units are mostly run by individuals with their family members who

cannot effort to have an organized market in system. The artisan cum proprietor of the unit takes care of all the activates involved.

He spends most of his time on producing goods and in acquiring raw materials because of his literacy; he is not well versed with

market information relating to his products. The primary marketing aspects such as product price, place and promotion are

discussed as under.





Product: It includes packing, color, price, prestige of manufacturer and retailer

Product Line: Marketing a single product is very uncommon in the present Days. Many firms offer a verity of product line. A

product line is a group of products according to customer needs. Change in product line depends on number of factors such as

tastes and fashion of the consumer nature of competition prevailing cost structure of the organization and so on. The handicrafts

units produce a number of products under the concept of product line. The artisans had new product and delay some of the

products as per the market conditions existing. They withdraw products, which are not profitable.

Product Planning and Development: It is found even in handicrafts they are the products of creativity and workmanship. They

create excellence in their products with the help of product planning and development. They undertake the process of expansion

and when there is demand for their products, they may even extend their production in anticipation of future demand. However,

expansion involves capital investment. Expansion means mechanization or enhancing the Existing capacity.

Pricing: It is a monetary expression value and is a point of exchange process. Buyers and sellers through negotiations say prices.

Through the process of bargaining both the parties, arrive at the anticipatory price. Setting one prices for all buyers is the modern

idea. The artisans are not able to estimate the exact cost of production due to several reasons as a result. They find it difficult to fix

the price based on cost of production. The craftsmen fix prices of articles basing on market acceptance and based on the price

offered by master craftsmen, dealers and co-operative society. Generally, prices fixed by craftsmen himself. Dealers will influence

the fixing of prices.

Place: Distribution is concerned with activities involved in transferring goods from producers to the end users. It includes

transport, storage and promotional activities. The artisans depend mostly on dealers and co-operative societies in marketing their

finished products some producers sell directly to the consumers. While others sell to dealers and co-operative societies but co-

operative societies are not servicing as a proper channel of distribution so, the craftsmen depend more on dealers and co-operative

societies to sell their product to the consumers.

Promotion: It is communicating the information to the buyer and seller to change the attitudes and behavior of consumers.

Promotion mix includes advertising, sells promotions, personal selling, publicity and packing. Craftsmen cannot under take

advertising because of the involvement of finance. Therefore, handicrafts corporations are under taking the work of publicity,

exhibitions, printing of brochures and participation in trade fair. The corporation will also under take to setup hoardings in

important places, near tourists centers etc., which service as a means of publicity other forms include participation in trade fairs,

sponsoring trade sending study teams to other states in the country etc.

CONCLUSION

There is vast cultural history to India and Indian handicrafts are accepted worldwide .Artisans are the reason for everything. The

future depends on the decisions taken by them today. In the corporate strategy, branding is important. Hence, artisans have to

involve in the brand formation strategy. The handicraft sector should not neglect the brand name under any circumstances. Time is

changing. What is permanent in this world is only time. New technologies are coming to the forefront of the customer. We have to

use information technology to get recognition within a short span of time. If appropriate steps are initiated this sector will thrive

further and gives good foreign exchange and employment to local artisans. The need of the hour is long-range vision and political

dynamism that takes the handicrafts sector to higher heights in the years to come.

REFERENCES

1. Prajapati, & Laila. (1981). Development of Handloom Industry. New Delhi: Deep & Deep.

2. Thaimani, K. K. (1987, November 24-26). Handicrafts during seventh five-year plan. In National Seminar on

development and Management of Handicrafts Cooperative, VAMNICOM.

3. Dak, T. M. (1989). Rural Industrialization: Challenges and Responses, pp. 23-24. Delhi: North Book.

4. Florence, K. (2005). Uganda Handicrafts Export Strategy (ITC Report).

5. (2010). Euro Zone Crises To Hamper Leather Industry. Resource Center RCIP. Retrieved from

http://www.fddiindia.com/publications/newsletter/2010/006-June/FDDINL_264_25.06.2010.pdf.

6. Sanyal, S., Banerjee, S., & Majumder, S. (2010). India’s Leather in the World Market: Exploration of Recent Trends.

Trade and Development Review, 3(1), 22–58.

http://www.fddiindia.com/publications/newsletter/2010/006-June/FDDINL_264_25.06.2010.pdf.





7. Retrieved from http://www.gjms.co.in/index.php/gjms/article/view/76

8. Retrieved from http://southren.ca/the-difference-between-new-media-and-social-media/

9. Retrieved from http://www.slideshare.net/akshatsrivastava4/dissertation-18628226

10. Retrieved from http://planningcommission.nic.in/plans/stateplan/upsdr/vol-2/Chap_b4.pdf

11. Retrieved from https://en.wikipedia.org/wiki/Social_media#Classification_of_social_media

12. Retrieved from https://en.wikipedia.org/wiki/Social_media#Distinction_from_other_media

13. Retrieved from https://en.wikipedia.org/wiki/Social_media

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LORD LINLITHGOW’S CORRELATION WITH INDIAN AGRICULTURE

& CONSTITUTIONALISM

Dr. Dharamjit Singh27

ABSTRACT

This research-oriented paper is an attempt to study the background based on which Victor Alexander John Hope, 2nd

Marquees of Linlithgow was appointed as the Viceroy and Governor General of India in 1936. He remained associated with

India in two official capacities. One was as Chairman of Royal Commission on Agriculture in India from 1926 to 1928 to

know the problems of the development of agriculture and of Indian peasant, the other one was his crowning position on

exalted post as Chairman, Joint Select Committee of British Parliament in 1933 to do the spade work in relation to the

constitutional reforms in India. To give justice to the theme explored, the author has consulted the Government of India files

available with National Archives of India, New Delhi and the then existing national and international level newspapers of

1934-1935 besides examining the parliamentary debates of Great Britain and related memoirs, reminiscences and

biographies in the reputed libraries of Delhi.

KEYWORDS

Royal Commission on Agriculture, Joint Select Committee of British Parliament, Indian Peasant, Viceroy and

Governor General of India etc.

INTRODUCTION

Lord Linlithgow is counted among those great Viceroys and Governor Generals of India whose regime was exceptionally longer

and who was acknowledged by the British Government remarkably competent. His appointment was based from his earlier two

august appointments, one in India, which gave him a chance to travel different parts of India to diagnose the intricacies of rural

economy and the other in Britain to have first-hand information of constitutional complex predicament of India. As Chairman of

Royal Commission on Agriculture, he travelled widely in the rural parts of India and assimilated their problems. As Chairman of

Joint Select Committee of the two Houses of British Parliament he got a chance to share with twenty two delegates of British

India to finalize constitutional recommendations for India and to have the constitutional view of the White Paper of 1931 and

subsequently the Government of India Act was promulgated on the recommendations of his masterly constitutional report. The

present paper is organized into five sections. Section I provides the introduction about the concept. Section II shows the

undertaken objective of the study. Section III deals with research methodology with sources of data and sample size. Section IV

presents detailed discussion and analyses the empirical results of the study. Section V summarizes and concludes the present

study.

OBJECTIVE OF THE STUDY

The objective of the study is to see how Lord Linlithgow remained linked with India from 1926 to 1935 before being elevated as

Viceroy of India and to analyses what was his performance as Chairman of Royal Commission on Agriculture and Joint Select

Committee of British Parliament.


Contemporary Government of India files, National and International News Papers available at National Archives of India, New

Delhi have been consulted to prepare this research oriented manuscript. In order to give objective look to the theme, historical

research methodology has been practiced. The biographies and memoirs of different Viceroys have been exhausted to have a fair

picture of the subject.

DISCUSSION

Victor Alexander John Hope, the second Marquess of Lord Linlithgow presided over the fortune of India as its Viceroy and

Governor-General for seven eventful years from 18th April, 1936 to 20th October, 1943. His tenure of office was longer than any

other viceroy and fraught with graver anxieties arising out of historic events than that of any of his predecessors.1 He was born on

September 24, 1887 as the eldest son of the first Marquees of Linlithgow and the Hon. Hersey de Moleyns. He belonged to an old

and illustrious line of Scotitish noblemen. The father of the Viceroy-designate, the first Marquees of Linlithgow (created in 1902)

27Principal, Mata Sahib Kaur Girls College, Punjab, India, [email protected]






was the first Governor-General of the Commonwealth of Australia, 1900-1902. Lord Linlithgow succeeded to the title, the year he

attained his maturity (1908)2 He was made Chairman of the Departmental Committee on the Distribution and Prices of

Agricultural Produce in 1923.When Ramsay MacDonald’s Labour Government came into power in 1924, he acknowledged the

Deputy Chairmanship of the Unionist Party organization. He was chosen Chairman of the Royal Commission on agriculture in

India. He worked in that office until 1928 when he was made G.E.C.I.E and Knight of the Thistle. He received an invitation to

accept the Chairmanship of the Unionist Party in succession to Colonel Stanley Backson, who had been appointed Governor of

Bengal in 1926. He declined the offer saying that he was reluctant to leave the work he had in hand.

When a Joint Select committee of the two Houses of British Parliament was constituted to prepare the draft of the Government of

India Act 1935, Linlithgow was appointed its Chairman (1933).3 He was also the Chairman of Market Supply Committee, Meat

Advisory Committee and later on the Board of Trade4 (1933-1936)4. He was the President of the Edinburg and East of Scotland

College of Agriculture and a fellow of the Royal Society of Edinburgh. He served as a Director of Bank of Scotland; Scottish

Widows Fund; Life Assurance Society; j& P Coats, Ltd. The Royal commission on Agriculture in India (1926-1928) with Lord

Linlithgow as its Chairman was appointed to examine and report on the then existing condition of agriculture and rural economy

in British India and to make recommendations for the improvement of agriculture and the prosperity of rural population. Its

personnel was announced by His Majesty’s Government on 1st April, 19265. As Chairman of the Royal Commission on

Agriculture in India from 1926-1928 he had toured British India extensively. He spent two winters in India and with characteristic

directness of aim went to the almost isolated hilltop of Mahabelshwur, instead of being busy at Shimla, to draft a report, which

had borne much valuable fruit6. The masterly report enhanced Linlithgow’s growing reputation. In pursuit of his work on

Agriculture Commission he travelled 18,000 miles in two years, and to use his own words, he “only took one working day off’ in

that time. He took care to master humblest peasants personally to get real insight into their hard lot in life. His reports displayed a

masterly grasp of the complications of Indian agriculture, and great confidence in bold measures of land reform suited to the needs

of India.7

Linlithgow found the agricultural research in India in its infancy and claims of research receiving a half-hearted recognition. On

his suggestion, the Commission planned an Imperial Council of Agricultural Research, the primary function of which would be to

promote, guide and coordinate agricultural and veterinary research throughout India. He preferred that a definite programme of

experiment should be laid down to ascertain, with all possible accuracy, the extent to which fertilizers could be used with profit.

He discerned agricultural engineering section of agricultural departments neglected and favoured its complete reorganization. In

order to make the cultivator familiar with agricultural research results, he not only favoured ocular demonstration to be shown to

him, but also stressed that it must be within the means of the cultivator to whom it was recommended. Linlithgow noticed the

working capital of the Indian cultivator, his livestock, cornered by serious cattle diseases and then suggested to the Commission

the establishment of a central veterinary hospital with a number of dispensaries serving subdivision of the districts.8

Linlithgow wrote commentary on Indian peasant. He did not find large-scale farming in British India. The average holding of the

cultivator was found small, about five acres in the South and East, and elsewhere not more than half the holdings exceeded that

limit. In many cases, holding consisted of a number of small pots dispersed throughout the lands of the village, some of which

were as small as hardly to repay tillage. He witnessed the people dwelling in small villages, the mud houses of which were

huddled together in a more or less compact area situated in the midst of the fields from which the populace derived their

livelihood. He was sorry to see 500,000 villages, out of which only a small proportion had so far been touched by metal led road

or railway; and post and telegraph offices were many miles apart He looked upon the uncertainly of the monsoon rains in the

greater part of India as the major hazard of cultivator’s life upon which he was entirely dependent except in areas artificially

irrigated.9

Analyzing the problems of subsistence of Indian peasant in 1932, Linlithgow saw political difficulties confronting India as dust in

the balance when weighed against the problem of the future food supply on India’s ever-growing millions. Measured in terms of

the means of livelihood at the disposal of the individual cultivator, he summarized that India was a poor country. He realized that

India’s prosperity and riches, in an overwhelming degree, were in the whole structure of India’s economy. He looked upon the

Indian peasant as the chief source and creator of both her wealth and her greatness. In fact, for Lord Linlithgow, peasant was

India. In order to lessen the burden of the peasant, he favored not only good government, but also as far as the circumstances

allowed, inexpensive government10.Under the British colonial rule , the development of Agriculture in India remained distorted

and it was lopsided. No doubt, it rose to the level of National agriculture but it was never prosperous agriculture. Agriculture

production was made possible as per the requirements of raw material of British Industry raw material. Indian peasant continued

to suffer and was made wretched due to colonial policies. Improvement of agriculture was possible if there would have been

native national government.

He was also chosen Chairman of the Joint Select Committee of British Parliament of Indian Constitutional Reforms, with

authority to call into discussion with representatives of Indian States and British India, to consider the future upon the White Paper

of December, 1931 (Proposals for Indian Constitutional Reform contained in Command Paper 4268 of great Britain).11 It gave

him another opportunity to know India. The selection of the Chairman of Select Committee was a difficult task. Prior to





Linlithgow’s selection , Earl of Peel, a former Secretary of State was fixed up for this post.12 Peel also accepted the invitation for

being appointed at the first meeting to be summoned for the afternoon of April 25,1933 at 2.30pm. However in the morning of the

day when the meeting of the Committee was to take place, Peel had been suffered a severe attack of phlebitis and could not

become available. Then Lord Linlithgow became the choice of the Committee and duly voted to the Chair. If Peel had not been

immobilized by phlebitis, Linlithgow would not have been Chairman and if Linlithgow had not been Chairman, he would have

been given no opportunity to exhibit the qualities that subsequently made Stanley Baldwin, the then British Prime Minister, to

pick him for the Viceroyalty13 . For month after month, Lord Linlithgow attended the ponderous meetings of the Committee. His

conduct of the affairs of that Committee throughout its prolonged sitting of eighteen months won general admiration and revealed

a broad-minded and statesmanlike view of the intricate problems involved.14 Twenty-two representative Indians from British India

and seven from the Princely India were appointed as assessors to the Committee. Linlithgow counted it as an honour and privilege

to work with the delegates from British India and thus to come again into direct contact with Indian problems. He did everything

possible to make it easy for the Indians to take an active part in the general discussions and the examination of witnesses15. He

was proved an admirable Chairman, fair and courteous to all interests. He ceaselessly labored over the task of evolving the new

constitution for India for eighteen months. He wrote the introductory chapter of the report. It was a brilliant piece of writing and in

substance; it could hardly have been bettered as a summary of the case for a generous advance in Indian self-government and for

the Federal line of advance recommended by the Committee16. Being the Chairman , he defended the safeguards incorporated in

the constitutional proposals for India in his broadcast address on 22nd November 1934 in London, arguing that the majority of

Select Committee were satisfied if the grant of responsible government to be a reality , it demanded the presence of certain

statutory safeguards.17In the discussion on the resulting India Bill, which ran the gauntlet of burly “diehard” opposition, he played

the useful part of a fully informed and convinced exponent of the merits of the federal scheme and also defended proposed

expenditure to be done in case the Federal Scheme was implemented. His preoccupation in those years with the work of Joint

Select Committee and his close association with the development of the Committee’s report into legislative form were generally

conceded to qualify him subsequently particularly of the task of bringing the new Act into operation.18 His work early as

Chairman of Royal Commission on Agriculture in India and then as Chairman of Joint Select Committee of British Parliament on

Indian constitution reforms paved the way for his subsequent dignified appointment as Viceroy and Governor General of India on

the night of 6th August 1935 from 10, Downing Street. Since he had long coveted the Viceroyalty, he accepted that with alacrity. 19

CONCLUSION

It can be aptly stated that Lord Linlithgow, before appointed as Viceroy, performed exceedingly well both as Chairman of Royal

Commission on Agriculture and Joint Select Committee of British Parliament. He became able to analyses the dense problems of

rural population of India in two years. His interest in the Indian agriculture was extraordinary. He was always for the welfare of

Indian peasant and was concerned with his poverty. He also became well conversed with constitutional tangle of India having

inter action with British India, Princely India and with British delegates. The knowledge of the problems of agriculture and

constitutionalism helped him to qualify subsequently for the Viceroyalty of India.

REFERENCES AND NOTES

1. (1979). Obituaries from the Times, 1951-1960, Reading-England, pp. 447. Hereafter cited as Obituaries from The

Times).

Dharmjit Singh, Lord Linlithgow in India 1936-1943, ABS publications, Jalandhar, 2005, pp.1-16.

Dharmjit Singh. British Imperialism and Political Impasse in India in 1941, pp.159-175. (2007). Research

Journal Social Sciences, 15(1). Punjab University, Chandigarh. Chandigarh: Chandigarh Publishing House.

2. (1935, August 08). The Times of India, pp. 9.

3. Joint Committee on Indian Constitutional Reform (session) 1933-1934), Proceedings (London 1934) Vol. I, pt. II, pp.1.

The Statesman, 7th August, 1935, pp.9

4. Who was Who, 1951-1960 (London 1961), V, pp.664.

5. (1926, April 02). The Statesman, pp. 7.

6. (1935, August 07). The Times, pp. 8. London.

7. (1928). Royal Commission on Agriculture in India (Abridged Report), pp. 4-31. Bombay. See also: The Statesman,

17th April 1936, pp. 9.

8. Department of Education, Health and Lands, Government of India, February 1929, File No. Agriculture ‘A’,

Proceeding No. 1. National Archives of India, New Delhi.





(1928). Royal Commission on Agriculture in India (Abridged Report), pp. 4-31. Bombay.

9. Victor, Alexander J. H. Linlithgow. (1932). The Indian Peasant, pp. 13. London.

10. Victor, Alexander J.H. Linlithgow. (1932). The Indian Peasant, pp.18-19. London.

11. The Parliamentary Debates, Extracts Relating to Indian Affairs, House of Lords, Session 1932-1933, pp. 260.

London, 1933, Pt. I.

Joint Committee on Indian Constitutional Reform (session) 1933-1934), Proceedings (London 1934) Vol. I,

pt. II, pp.1

12. (1954). Viscount Templewood, Nine Troubled Years, pp. 89. London. Hereafter cited as Templewood, Nine Troubled

Years.

13. Templewood, Nine Troubled Years, pp. 89.

14. (1935, August 07). The Civil and Military Gazette, pp. 1.

15. Templewood, Nine troubled Years, pp.90.

Joint Committee on Indian Constitutional Reform (session) 1933-1934), Proceedings (London 1934) Vol. I,

pt. II, pp.33-34

16. (1935, August 08 & 1936, April 17). The Statesman, pp. 8 & 9 (respectively).

Joint Committee on Indian Constitutional Reform (session 1933-1934), Report (London 1934) Vol. I, pt. I,

pp. 1-244

17. (1934, November 24). The Statesman, pp. 9.

18. The Parliamentary Debates, House of Lords (Britain), Official Report, Fifth Series, 1934-1935, November 20 to

February 28, London, 1935, Vol. 95, p.453.

(1935, August 08). The Times of India, pp. 9.

19. Carl Bridge. (1986). Holding India to the Empire, pp. 141. New Delhi.

The Times, (London), 7th & 8th August 1935, pp. 10 &. pp. 12 respectively. His appointment caused no

surprise, as he was to implement in India what he has done as Chairman of two august bodies.

*****




















RETAILING STRATEGIES FOR CUSTOMER SATISFACTION:

RESEARCH FRAMEWORK TO STUDY SELECT RETAIL CHAINS

Dr. Ravi Prakash Kodumagulla28

INTRODUCTION

The retail store industry continues to look for ways to create better service that will lead to an increase in customer satisfaction

and customer loyalty. The retail marketplace in the 21st century is fueled with competition, creativity, and innovation. Retail store

managers throughout world are taking into consideration managerial tools and processes to improving customer satisfaction. The

introduction provides the reader a general purpose of the importance of this research and outlines the scope of the research to

define the problems associated with the study. The purpose of the current study is to determine whether retail stores can improve

customer satisfaction through the store choice, merchandise display and store atmospherics employment of technology in core

service. If there is found to be a relationship between improved customer satisfaction through the store choice, display and store

atmospherics employment of technology in core service systems in the retail environment then the relationship merchandise will

be employed in a manner to predict future improvements. The reason for the study is to analyze whether an increase in customer

satisfaction can be achieved through store choice, merchandise display, store atmospherics and employment of technology in core

service. If a significant relationship is found, the results of the research study may offer solutions to the potential problems

associated with retail store chains thereby helping retail store chains increase revenues. The research objective highlights four

specific hypotheses that may be productive in gauging the evaluative quantitative outcomes of this research study. The retail store

industry is seen as a global organism intended to create competitive advantage through buying low cost consumer products

throughout the world and passing the savings on to consumers. Technology can afford retail store chains with the ability to

compete in a global economy, the retail store chain will still need to find attractive ways to increase consumers buying habits.


Although retail store chains compete on price, effective marketing allows retail store chains to differentiate something other than

price (“Stores,” 2008)1. The format for which marketing differentiate retail stores to impact a segment of the population means

that retail store chains will need a better understanding of how the product mix within their inventory affects their customer

overall experience. The consumer’s overall experience in this study is measured by the dependent variables: customer satisfaction

and customer loyalty. There are significant studies available to support the collection of this study. Baidya and Basu (2007)2

captured the effectiveness of marketing expenditures from a brand perspective. Park and King (2007)3 evaluated food retailing

efficiency through the role of information technology. Mitchell (2008)4 wrote about retailers attracting and retaining shoppers by

offering the appropriate mix of national and private label products. Britt (2008)5 incorporated the management process enabling

their managers to run reports on sales and other performance measures to handle inventory better.

OBJECTIVES OF STUDY

The study aims at exploring, in detail the following in the context of customer satisfaction in retail sectors:

To Study the ‘customer service’ offered by the retailer and evaluate its implications on delivering customer satisfaction.

To investigate the ‘store choice and issues’ and calculate their effect on customer satisfaction.

To evaluate the ‘merchandise displays’ factors and study their impact on customer satisfaction.

To examine the issues in ‘store atmospherics’ and measure their influence on customer satisfaction.

To critically examine the retailer’s strategies in relation to customer service, store choice & issues, merchandise display,

store atmospherics, and suggest a model.

SCOPE OF STUDY

The scope of the study is wide from a concept point of view, because it covers major aspects of ‘Retailing Strategies for customer

satisfaction’. However, from an empirical point of view, the scope of the study is narrow. On the aspect of retailing strategies, the

study confines to the twin cities of Hyderabad and Secunderabad, Andhra Pradesh. The study explores retailing practices in the

select Food and Grocery retail chains in Hyderabad & Secunderabad. The contribution of only four customer satisfaction related

attributes, viz., ‘customer service’, ‘store choice and issues’, ‘Merchandise Display ’and‘ Store Atmospherics’ are selected for the

study.

28Professor, Vishwa Vishwani School of Business, Osmania University, Telangana, India, [email protected]






HYPOTHESES OF STUDY

The following hypotheses are formulated for testing in the study:

H1: Core and other service factors have a greater influence on customer Satisfaction.

H2: There is a significant difference between merchandise displayed in retail stores and customer satisfaction as per their

Income level.

H3: ‘Store Choice’ and issues have a significant effect on customer satisfaction according to their Income & Marital

Status.

H4: ‘Store atmospherics’ has a positive influence on customer satisfaction.

H5: A conceptual model in which the Store Service, Store choice, Merchandise display and Store atmospherics well fit

the data better.


This Chapter presents the details of research methods used in the study. The first five sections describe the basic methodological

aspects of the present study. The other sections describe the data used for the study; include types of data and their collection

methods, research instruments, research design, sampling design and the tools and techniques for data analysis. The ‘sampling

method’, ‘method of collecting data’, ‘statistical tools’ and the reasons for choosing personal interview have also been explained

in this chapter.

Research Problem

Customer satisfaction measures how a product or a service performs in relation to customer needs and expectations. In conducting

satisfaction studies, most firms want to determine what the important features is and attributes are for their services or products

and then measure perceptions of those features as well as overall satisfaction. The evaluation of those elements is a crucial point

for understanding positive or negative market answers.

Sampling Design

Population Sample Universe

The population universe in the present study consists of all the Food and Grocery retail chains in the Twin Cities of Hyderabad &

Sec-bad. Presently in the twin cities there are around 16 food and grocery retail chains operating.

Sample Frame

The sample frame consists of all the Customer (Converts) visiting these retail outlets. Every retail store has a number of customers

who walk in and walk out. This study frame confines itself to only those who purchase the goods from the store. They are referred

to in the retail terminology as “Converts”.

Sampling Method and Size

Simple Random Sampling (Without replacement) was adopted for the present study. A sample of around 500 respondents, were

finally chosen for the present study.

Statistical Tools and Techniques used in the Study

For analyzing the primary data, statistical tools have been used in the Research Study, which included the following:

Frequency Tables,

Chi-square test; and Factor analysis.

EXPLANATION

It is evident from the Figure that the Customer has a set of perceptions on Store Choice & issues, Merchandise Display, Customer

Service and Store Atmospherics. The outcome of these 4 attributes yield his/her Satisfaction Process. The Customer may be either

Satisfied or Dissatisfied. The outcome of level of Customer Satisfaction may result either in positive or negative perceptions. Both

of these are learned perceptions and they add on to the Customer forming new set of perceptions about the retailer. This has a two-

way interacting effect on the Retailers Strategies. In this research both the +ve and –ve perceptions and their affect are not

measured, as they are the extraneous variables in the present study. The effect of all the extraneous variables is affecting the

present research study is treated as constant.





CONCEPTUAL FRAMEWORK OF THE RESEARCH

Figure-1

FINDINGS OF STUDY

The study was aimed at measuring customer satisfaction through the specific attributes of research, i.e. viz., Customer Service,

Store choice, Merchandise displays, Store atmospherics that finally suggest the strategies to be adopted by the Retailer. The study

was conducted on customers in select stores of Hyderabad & Secunderabad. From the data collected and analyzed there upon, the

following findings are drawn:

It is understood that all customers of the 5 select retail chain stores observed that Retail management strategies is over

all satisfactory for the data collected and there is a considerable scope for improvement of the same.

The present study on Retail stores shows Male dominated responses and the ratios were 62% Male, 38% Female.

Marital Status of the respondents, who visited the stores, shows that 58% were married and 42% were unmarried.

Most of the respondents are from Nuclear family (71%); the remaining 29% are from Joint family. The respondents who

purchased (Converts) from the stores and having 2 or less than two children were 78.2% (cumulative). This shows that

the store is conveniently to the customers who are from Nuclear family, married and are having 2 or less children.

The percentage of respondents (Converts) were Employees (41.6%), Professionals (17.5%), Business (19.6%),

Housewives (6.4%) and Students 14.9%).

The majority of the respondents who are visiting the study stores, consist of Employees and business people, whose

income are ranging from Rs 10,000 to 40,000 per month, having own houses or apartment. This shows that people with

an income of above Rs 40,000 per month visiting the stores are less in number.

The most of the respondents (Store converts) whose monthly budget for food and grocery were ranging between Rs

1,000 – Rs 4,000.





Only 40% of the respondents are having Store membership cards. The store thus has to motivate the customer through

gifts, discounts and benefits for more members to join. Therefore, it is evident that awareness to increase store

membership is a major factor to improve the customer satisfaction.

SUMMARY

Considering the market environment, leaders of retail chains are pressured to meet high growth measures in the area of revenue

growth. The pressure that retail store managers face in maintaining high growth measures deals with the challenges and the

complexities of consistently trying to match a product with the needs of the customer (Dion, 2008, p. 3). In respect to developing

and or improving customer retention, leaders of retail store chains may want to explore ways in which they can improve the

current systems and design a process model that may help retail store chains increase customer satisfaction beyond the national

average.

REFERENCES

1. Oliver, R. L. (1997). Satisfaction, a Behavioural Perspective on the Consumer. New York: McGraw-Hill.

2. Pettijohn, C. E., Pettijohn, L.S., & Taylor, A. J. (2002). The influence of salesperson skill, motivation, and training on

the practice of customer-oriented selling. Psychology and Marketing, 19, 743–757.

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4. Rossi, P. E., Gilula, Z., & Allenby, G. M. (2001). Overcoming scale usage heterogeneity: A Bayesian hierarchical

approach. Journal of the American Statistical Association, 96, 20–31.

5. Bacon, L. (1999). Using LISREL and PLS to measure customer satisfaction. In Sawtooth Software Conference

Proceedings, (pp. 305–306). San Diego.

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54(1), 27-42.

7. Anderson, James C., & Gerbing, David W. (1988). Structural equation modeling in practice: a review and recommended

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8. Armstrong, G., & Kolter, P. (2000). Marketing: An Introduction (5th Edition). New Jersey: Prentice Hall.

9. Bagozzi, Richard P., & Yi, Youjae. (1988). On the evaluation of structural equation models. Journal of the Academy of

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10. Baker, Thomas L., Simpson, Penny M., & Siguaw, Judy A. (1999). The impact of suppliers ‘perceptions of reseller

market orientation on key relationship constructs. Journal of the Academy of Marketing Science, 27(1), 50-57.

11. Barnes, J. G. (1997). Closeness, strength, and satisfaction: examining the nature of relationships between providers of

financial services and their retail customers. Psychology and Marketing, 14(8), 765-790.

12. Beatty, Sharon E., Coleman, James E., Reynolds, Kristy Ellis, & Lee, Jungki. (1996). Customer-sales associate retail

relationships. Journal of Retailing, 72(3), 223-247.

13. Bennett, Roger. (1996). Relationship formation and governance in consumer markets: transactional versus the

behaviorist approach. Journal of Marketing Management, 12, 417-436.

14. Berry, Leonard L., & Thompson, T. W. (1982). Relationship banking: the art of turning customers into clients. Journal

of Retail Banking, 4, 64-73.

15. Berry, Leonard L., & Gresham, Larry G. B. (1986). Relationship retailing: transforming customers into clients.

Business Horizons, Greenwich, 29(6), 43-48.

16. Berry, Leonard L., & Parasuraman, A. (1991). Marketing Services-Competing Through Quality. New York: The Free

Press.





17. Berry, Leonard L. (1995), Relationship marketing of services-growing interest, emerging perspectives. Journal of the

Academy of Marketing Science, 23(4), 236-245.

18. Bitner, Mary Jo, Booms, Bernard H., & Tetreault, Mary Stanfield. (1990). The service encounter: Diagnosing favorable

and unfavorable incidents. Journal of Marketing, 54, 71-84.

19. Bollen, K. A. (1989). Structural Equations with Latent Variables. New York: John Wiley and Son.

20. Bolton, Ruth N., & Drew, J. H. (1991). A multistage model of customers’ assessments of service quality and value.

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21. Bolton, Ruth N. (1998). A dynamic model of the duration of the customers’ relationship with a continuous service

provider: The role of satisfaction. Marketing Science, 17(1), 45- 65.

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A STUDY ON CONSUMER PERCEPTIONS IN TERMS OF PREFERENCES

AND ATTITUDES TOWARDS COCA-COLA SOFT DRINKS

Dr. U. Kanaka Rao29 D. Udaya Shekhar30

ABSTRACT

In this pare an attempt is made to understand and analyze Consumer Perceptions in terms of their Preference and Attitudes

towards Coca-Cola Soft Drinks. Coca-Cola brings back the Fizz to India Coca-Cola, the corporate nourishing the global

community with the world’s largest selling soft drink concentrates since 1886, returned to India in 1993 after a gap of 16

years giving a new Thums-Up to the Indian Soft Drink Market. In the same year, the company took over ownership of the

nation’s top soft-drinks brands and bottling network. No wonder, these brands have assumed an iconic status in the minds of

the consumers. Coca-Cola India has made significant investments to build and continually consolidate its business in the

country, including new production facilities, wastewater treatment plants, distribution systems and marketing channels. Coca-

Cola India is among the country’s top international investors, having invested more than US$ 10 billion in India within a

decade of its presence and further pledged another US$ 400 million in 2015 for its operations.

PRELUDE

The term “Soft Drinks” refers to all types of non – alcoholic, carbonated, sweetened and flavored beverages. They are all

artificially sweetened. The soft drink industry has been undergone many changes with changing consumer needs, wants and

changing government policies. This formed the basis for different innovations in packaging such as bottles, cans, tetra packs, pet

bottles etc., in a variety of flavours. On a hot summer day, soft drinks become a welcome factor for its refreshing taste and as one

starts gulping, it gives some sort of satisfaction, which cannot be defined in words but can only be felt. The term “Soft Drinks”

refers to all types of non – alcoholic, carbonated, sweetened and flavored beverages. They are all artificially sweetened. The soft

drink industry has been undergone many changes with changing consumer needs, wants and changing government policies. This

formed the basis for different innovations in packaging such as bottles, cans, tetra packs, pet bottles etc. in a variety of flavours.

“Soft Drink” market is like an ocean, the demand for its can never be estimated properly, for as long as the competition from

unorganized sector and homemade drinks continue unabated. In Europe, there are many springs with natural effervescent water of

the sputnik use since not everyone will get this water as often as they wanted of human mind though of increased volume of say

and these early attempts marked the beginning of bottled soft drinks in volume. Around 1807, in the American continent, bottled

soda was on a large-scale, and the credit goes to Joseph Hawkins, who invented a machine and obtained a patent for

manufacturing and bottling carbonated water in 1809. This is the first instance of recorded patents in soft drinks.

With the invention made by John Mervin Nooth, an English man who developed an apparatus for the production of Co2 (Carbon

dioxide) during 1832 cholera epidemic, manufacturing fort drinks on scientific lines was made possible. (Effervescent water was

manufactured basing on this invention).


Swen and Combs, 1976 the concept of user satisfaction occupies a central position in marketing thought and practice. The

centrality of this is that the profits are generated by satisfying the needs and wants of the users or customers. This field of research

emerged in the early 1970’s and has accelerated in the recent years. It is hypothesized that customer satisfaction is positively

related to the product performance, dimension of which were categorized qualitatively into instrumental i.e. natural attributes of

the product like capability, usability etc. The expressive i.e. psychological or determinant attributes like color style etc.”

Oliver, L. Richard, 1981 “2It was later identified that the distribution channel plays a unique role in satisfying the needs of the

retailers than the manufacturer by proposing a non-traditional multiphase satisfaction programme based on major components of

satisfaction process.”

“3Today’s customers are becoming harder to please. They are smarter, more price conscious, more demanding, less forgiving and

many more competitors with equal or better offers approach them. The challenge, according to Jeffrey Gitomer, is not to produce

satisfied customers; several competitors can do this. The challenge is to produce delighted and loyal customers”.

29Associate Professor, Department of Business Management, Swarna Bharathi Institute of Science & Technology, Telangana,

India, [email protected] 30Assistant Professor, Department of Business Management, Madawalabu University, Ethiopia, [email protected]







NEED FOR STUDY

The attitudes of the target consumers are highly vibrant showing the things of fast movement in their life styles. They are also

amenable to marketer’s purposive maneuvers. Second, Khammam soft drinks market is highly promising and there lies a lot of

potential, which is yet to be tapped. Third, the market has to two components representing both formal and informal marketers. As

consumer behaviour is crucial factor, which influence the buying decision of the target segment, it is very essential to study the

attitudes of the target customers.

STUDY OBJECTIVE

To study the consumer perceptions in terms of their preference and attitudes towards soft drinks.

METHODOLOGY

The data collected for the preparation present paper is gathered from the sources, which includes primary and secondary.

Primary Source

Majority of primary data is gathered by making a sample survey of 200 Respondents consisting of cross section of this societies

were selected on a random basis a schedule has been designed and administered among all the 200 Respondents the summary was

carried out in Khammam City during the month of May to June 2015. For analysis and interpretation of the data, percentages were

used.

Secondary Source

A part of the data is also gathered through the secondary sources, which include company website, previous reports, annual

reports, magazines and other published articles.

SCOPE OF STUDY

The study focuses its attention on consumer behaviour in general and soft drink markets in particular. Accordingly, only a few

selected characteristic relating to Soft drink buyers in relation to their socio-economic background and purchasing related matter

are studied. The survey was conducted during May and June – 2015 in Khammam on a selected group of 200 respondents.

ANALYTICAL TOOLS FOR STUDY

Statistical Tools used for analyzing the study data includes Simple Averages, Percentages, and Totals. However, for, it is of

descriptive nature and does not establish a causal relationship between characteristics chosen for study. Therefore, it does not

involve use of any quantitative methods.

Table-1: Predicting the preference of Coca-Cola Drink by both the Genders

S. No. Response Number of Respondents Percentage

1. Yes 123 65

2. No 67 35

Total 190 100

Sources: Primary Data

Note: Unit of Measurement = Persons

Table-2: Revealing the Reasons for the Discrimination on the basis of Gender in its Consumption


1. Because of Colour 10 15

2. More Stronger 8 12

3. More Acidic 42 62

4. Cannot Say 7 11

Total 67 100







Table-3: Revealing the Background of the People who Consumes the Drink


1. City Culture People 67 35

2. Village Background 19 10

3. Both Area People 86 45

4. Cannot Say 18 10

Total 190 100



Table-4: Showing Particulars about Viewing of Coca-Cola Advertisement on T.V.


1. Yes 184 97

2. No 6 3

Total 190 100



Table-5: Showing the Impact of Advertisement on Respondents


1. Inspiring 72 38

2. Motivating 82 43

3. Encouraging 20 10

4. Not at all 16 9

Total 190 100



Table-6: Is your favorite Drink is Hygienic?


1. Yes 120 63

2. No 42 22

3. Cannot Say 28 15

Total 190 100



Table-7: Respondents Awareness of Coca-Cola Manufacturing Process


1. Yes 122 64

2. No 68 36

Total 190 100



Table-8: Respondents Satisfaction about Manufacturing Process


1. Yes 102 84

2. No 20 16

Total 122 100







Table-9: Volume of Drink Preferred by Respondents


1. 300 ml 60 31

2. 200 ml 106 57

3. 500 ml 14 7

4. 1500 ml 10 5

Total 190 100



Table-10: Depicting Opinion about the Pet Bottle Drink


1. Yes 121 64

2. No 69 36

Total 190 100



Table-11: Depicting the Reasons for the Difference between Bottle Drink and Pet Bottle Drink


1. More Tasty 60 49

2. More Quality 42 35

3. More Fresher 10 8

4. More Stronger 9 8

Total 121 100



Table-12: Depicting the Details Regarding Consumption of Pet Bottles


1. Occasionally 72 38

2. Outings 38 20

3. Home Consumption 41 22

4. Parties 39 20

Total 190 100



Table-13: Showing the Opinion Regarding the Affordability of Price


1. Yes 122 64

2. No 68 36

Total 190 100



Table-14: Depicting the Fair Price Quoted by the Respondents


1. Less than 5/- 51 75

2. Less than 8/- 02 03

Less than 6/- 10 15

Fair Price 05 07

Total 68 100







Table-15: Depicting the Opinion Regarding the Awareness of “Rumor’s in Soft Drink Industry”.


1. Yes 124 65

2. No 66 35

Total 190 100



Table-16: Depicting the Belief of the Respondents in the Rumor’s


1. Yes 58 47

2. No 66 53

Total 124 100



Table-17: Respondents Opinions of the Rumor’s on Soft Drinks


1. It Contains Pesticides 40 69

2. Caffeine Content 18 31

3. Alcohol 0 0

4. Cannot Say 0 0

Total 58 100



Table-18: Showing the Opinion of Respondents about Film Star Advertisements


1. Attracting 120 63

2. Encouraging 42 22

3. Discouraging 11 06

4. Cannot Say 17 09

Total 190 100



Table-19: Respondents Opinion on Film Star Advertisements in T.V.


1. Yes 173 91

2. No 17 09

Total 190 100



Table-20: Furnishing the Opinion of those Respondents who Approved Film Stars in Casting for their Favorite Drink


1. Chiranjeevi 135 78

2. Venkatesh 10 06

3. NTR 10 06

4. Any of them 18 10

Total 173 100






Table-21: Furnishing the Opinion of those Respondents who Disapproved Film Stars in Casting for their Favorite Drink


1. Political Leaders 0 0

2. Freedom Fighter 0 0

3. Doctors 8 48

4. Scientists 9 52

Total 17 100



Table-22: Respondents Advice on Modification in the Drink Manufacturing Process


1. Change in Colour 51 27

2. Change in Bottle 80 42

3. Change in Process 39 20

4. Change in Supply pattern 20 11

Total 190 100



SUMMARY OF FINDINGS

As per the survey 50% of the respondents prefer 200ml drink, as their volume of quantity for their thirsty needs

Majority of respondents take cool drinks occasionally. Coca-Cola Drink is consumed occasionally and mostly on

outings, it was confirmed by 70% of the Coca-Cola drinkers.

78% of the respondents approved Chiranjeevi as a film star in casting for their favorite drink.

Brands selection, Place selection, Time selection, Quantity selection are the decisions taken by the individuals

themselves. This phenomenon is found among all the respondents belong to different income group categories. The role

of the parents is insignificant.

75% of the respondent deposited less than Rs. 5/- as the fair price for their favorite drink.

Respondent has advised the modifications in the manufacturing prices, as per that 42% of the respondents advice there

should be change in the bottle, after every process.

The advertisement scheme of Coca-Cola has been successful as it is able to motivating people in taking this drink and

this is admitted by 43% of the Coca-Cola drinkers.

Customers have quoted that:

Price of the Soft Drink to be constant along with quality and quantity.

Use of pesticides issue was a major concern.

The domination of the retail shop sellers during the buying decision and brand selection process should be controlled.

Check the Brand availability from time to time with better distribution to the retail outlets.

SUGGETIONS

The supply management of the soft drinks should be according to the needs of the customers to facilitate the movement,

availability and various logistic based activities.

The maintenance of the sanctity and healthy environment will enhance the confidence among the users.

The influence groups for buying decision-making should be considered in managing the customers effectively.

As part of the advertisement, Coca-Cola should be given more publicity, to reach the customers in the remote areas.

As a matter of innovation the company, should also produce fruit juices and hot drinks like tea, coffee etc., which are

suitable to drink in winter and rainy seasons, which will improve demand and goodwill for the company?

Most of the respondents expressed that 200ml is sufficient for fulfilling their thirsty needs. Hence, it is to be supplied at

large size in the market, because some of them feel that it is scarce in the market.

Coca-Cola should also be made available in tins, in small towns.

Decrease a little bit of sweetness in the drink, since it is felt like taking more calories in diet.





The above are the few suggestions gathered from the customers, from the survey made which may be some times

biased. Hence, the suggestions are totally based on the customer’s opinion.

REFERENCES

1. Schiffman, & Kanuk. (1991). Consumer Behaviour (6th Edition), pp. 220-234. . Prentice Hall.

2. Stanford, C. T. (1998-99). Customer Relationship Management: Market Trends and Opportunities (11th Edition), pp.

59-62.

3. Engle, Blackwell, & Kollatt (2000). Consumer behavior (3rd Edition), pp.155-167. New York.

4. Eenest, Dichtar. (1964). Handbook of Consumer Motivations (1st Edition), pp.12-19. McGraw Hill.

5. Philip, Kotler. (2012). Marketing Management (12th Edition), pp. 297-301.

6. Ramaswamy & Namakumari. Marketing Management (5th Edition), pp. 254-269. TMH Publishers.

7. Retrieved from www.cocacola.com

8. Retrieved from www.pepsi.com

9. Retrieved from http://www.academia.edu/5167110/CHAPTER_-1_INTRODUCTION

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A STUDY ON VIDEO DISPLAY AS VISUAL MERCHANDISING TOOL

AND IT’S INFLUENCE ON CONSUMER BUYING BEHAVIOUR

WITH SPECIAL REFERENCE TO GROCERIES

Dr. Hemanth Kumar S.31 Dr. Sathyanarayana S.32

ABSTRACT

In today’s world, there is a variety of cereals, pulses and oil introduced in the market and has been increasing along with the

purchasing power of consumers. The greatest challenge faced by today’s generation while buying these cereals pulses and oil

is not how to cook but how to choose these essential commodities to cook. Today’s consumers have very little Knowledge

about these products and depend on the advice of their friends and relatives or try to experiment with these products, such as

rice in small quantities before they buy them in huge quantities. However, the knowledge about these essential commodities is

restricted to the present generation. In order to help and to educate the consumer about these essential commodities such as

the age of rice, the methods to be followed while cooking these cereals and pulses or the cleaning process it under goes etc.,

visual merchandising can be seen as important source of information provider to the consumers.

Aiming at providing the right information to consumers become an important aspect while making their decisions during their

purchase. Visual merchandising is majorly explored and exploited in apparels. However the current study aims at utilizing the

tools of visual merchandising

Such as visual displays (electronic displays) in order to provide necessary information about these essential commodities to

the consumers. Hence, this empirical study is aimed at presenting the Information to the consumers about the products

(cereals, pulses and oil) in an effective and creative way and understanding the impact of consumers purchasing behaviour

with the introduction of the product displays in the Store.

INTRODUCTION

Visual Merchandising Displays

Visual merchandising can be defined as the activity that matches effective merchandise assortment with effective merchandise

display (Bell & Ternus, 2006: 20). In today’s retailing environment, visual merchandising forms a central part of the retailer’s

marketing strategy. Besides the window displays, which are clearly designed with the purpose to attract walk ins by consumers

and encourage walk-ins, there are also in-store decorations that are designed to enhance the consumer’s comfort and convenience

while shopping, and overall to offer the consumer a better shopping experience. Taking into account the importance of visual

merchandising on retail businesses today, the single and most important reason for using visual merchandising displays is to

engage with and inspire shoppers, to encourage them to buy more of the products the retailer is selling, to increase sales, make

margin and generate a return on floor space. Visual merchandising also has a profound effect on the acceptance of a product, the

creating of the brand value perceptions, as well as the overall marketing of the product or brand.

PROBLEM STATEMENT

Visual merchandising is a concept where the consumers are influenced to buy products, which range from apparels to groceries.

The knowledge of consumers between the age group of 18-30 years is relatively low while purchasing groceries like rice, wheat,

pulses, oil. In order to educate the consumers with the introduction of information for these groceries is provided, which focus on

the origin of the product, age of the product, procedure to cook etc. Therefore, this empirical study aims at understanding the

acceptance of consumers with the introduction of visual displays, which provides the detailed information of products to these

consumers.

RESEARCH OBJECTIVES

To analyses factors influencing the buying behaviour of the consumers.

To understand buying behaviour of grocery items in retail stores.

To study video display as visual merchandising tool and its influence the Buying behaviour of consumer.

31Assistant Professor, M. P. Birla Institute of Management, Karnataka, India, [email protected] 32Associate Professor, M. P. Birla Institute of Management, Karnataka, India, [email protected]







SCOPE OF STUDY

It is known that the shoppers feel that merchandising displays are very effective in influencing purchase decisions. The

information provided to the consumers about the Product quality helps in differentiating and comparing between the products. The

study is limited to the grocery products such as rice, wheat, pulses, oil etc., where the detailed information is provided to them.

Therefore, the retail industry can take measures to see the changing preferences of consumers and how they look forward to find

probable solutions in their day-to-day business. This strategy can prove to be a source of revenue generation by increasing the

sales volumes of the consumer products.

NATURE OF STUDY

This is an explorative study and concerns with finding the consumer preference towards the way buying groceries. The study is

based on the purchases made by the consumers in the retail outlets like the supermarkets, departmental stores, kirana stores, single

and multi-branded retail outlets where the groceries are sold.

Primary Data

In this study, the responses were collected through a structured questionnaire. Convenient sampling method was used in this

research. As the name implies, the respondents were choosen based on the convenience of the researcher. This non-probability

method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time

required to select a random sample.

Sample Description

The sampling units were selected based on actual problem and the objective of the study. The focus was on the age group of 18-30

years as it forms the base for the research. The number of samples considered is 100

Table-1: Table Showing the Age Group of Respondents

Age Number of Respondents Percent

Less than 18 Years 02 2.0

18-30 87 87.0

30-45 07 7.0

More than 45 04 4.0

Total 100 100

Sources: Field Investigation

DATA REPRESENTATION AND INFERENCES

Table-2: Table Showing Factors Which Influence Respondents to Buy Products

During

Store Visit Location

Brand

Name

Offers and

Discounts

Varieties and

Assortments

Visual

Displays

Shopping

Experience Quality Advertisement

Highly

Satisfied (5) 31 18 18 20 12 20 61 9

Satisfied (4) 34 45 35 38 41 43 24 18

Neutral (3) 23 26 31 32 25 23 9 44

Dissatisfied (2) 8 11 15 10 19 15 4 24

Highly Dissatisfied (1) 8 4 5 4 8 3 5 9


Inferences

From the table-2, most of respondents buy product based on the quality of the product during their visit to retail store. The buying

patterns of consumers are still considered volatile however, quality is considered the most important criterion to visit a particular

retail stores. The respondents have rated location as an important factor while buying the grocery followed by the brand name of

the product and the shopping experience one receives. However, the offers and discounts offered by the retailer was rated

relatively lower when compared to the other factors.





Table-3: Table Showing Respondents to the Facilities provided to them while Purchasing

Facilities Provided

While Making a

Purchase

Origin Process of

Growing

Cleaning

Process

Technology

Employed

Cooking

Methods

Age of the

Product

Farming

(Organic /

Non organic)

Use of

pesticides

Highly

Satisfied (5) 13 16 30 8 17 30 28 39

Satisfied (4) 37 33 39 34 41 34 36 25

Neutral (3) 28 35 18 33 22 24 22 20

Dissatisfied (2) 13 11 11 17 17 10 13 14

Highly Dissatisfied (1) 11 7 4 10 5 4 4 5


Inferences

From the table-3, most of respondents would want to know information about the usage of pesticides in their produce while

making a purchase. The consumer has a right to seek information on/about the cereals pulses and oil before making a purchase.

The most important information that a consumer sought after information by the consumer, which influences to buy the cereals

pulses and oil, is the cleaning process the product that has to go through. This factor is considered the most important criteria

while choosing the cereals pulses and oil. It is the highest rated factor amongst all the factors considered. The respondents were

keen to know the pesticides that were being used. This implies that the consumers are aware about the side effects of pesticides

and much emphasis is given on the same. The age of the cereal pulses are also given equal importance along with the farming

techniques being used i.e. if it is organic farming or industrial farming. Therefore, high emphasis is given on all the factors from

the origin of the product to the demonstration of the use of these products.

Hypothesis-1

Null Hypothesis (H0): There is no significant relationship between the monthly Expenditure and the prices of groceries

are raised.

Alternate Hypothesis (H1): There is a significant relationship between the monthly Expenditure and the prices of

groceries are raised.

Table-4

Value D.f. Asymp.

Sig.(2-ided)

Pearson Chi-Square 2.316a 3 .509

Likelihood Ratio 30.781 3 .0268

Linear-by-Linear Association .842 1 .359

N of Valid Cases 97


Analysis: It is evident from the above table that the Chi-square value is 2.316 with p value of .509, which is greater than the set

level five percent. Hence, the researcher rejected the null hypothesis.

Hypothesis-2

Null Hypothesis (H0): There is a no significant relationship between age group and purchases made by visual merchandising.

Alternate Hypothesis (H1): There is a significant relationship between age and purchases made by visual merchandising.

Table-5

Value D.f. Asymp.

Sig.(2-sided)

Pearson Chi-Square 6.413a 3 .093

Likelihood Ratio 9.075 3 .028

Linear-by-Linear Association 1.158 1 .218

N of Valid Cases 100






It is evident from the above table that the Chi-square value is 6.413 with p value of .093, which is greater than the set level five

percent. Hence, the researcher rejected the null hypothesis.

FINDINGS

The study was conducted to understand the influence of the visual displays while making purchase was found to be accepted by

the respondents.

The respondents buying behaviour with respect to groceries mainly depend upon the experience of oneself and on the information

that is gathered about the cereal pulses and oil from family and friends.

The major factors that influence the buying behaviour of the consumers are the Origin of the products, the cleaning process that it

goes through, the pesticides Used on the crops, the farming techniques, which are adopted etc., adds value in making a decision.

The highest rated factors, which form the basis for making a decision, from where and how to buy the cereals pulses and oil, are:

Quality

Age of the product

Cleanliness

Pesticides Used

Shine of the pulses

Post cooking taste

The overall shopping experience.

Information about the origin of the cereals pulses and oil, up to the post cooking methods was considered vital and helpful while

making a decision to buy the product. These factors help us to understand the need to fulfil the requirements of the respondents.

Surprisingly offers, discounts associated with the price have not been the focus of the consumers when it comes to quality of the

cereals pulses and oil. There is a resistance built while choosing the best deals if the offers do not include the products that the

consumer seeks.

Therefore, the study indicates that the information provided by the visual displays will benefit the consumer in choosing a product

in a better way.

SUGGESTIONS

The study shows an entreated keen interest in the usage of visual displays in an effective manner and has shown acceptance from

the consumer. Hence, implementation of this strategy would enable the retailers to have an edge in increasing the sales of the

products and gaining the confidence of the consumer.

It is derived from the study that the consumer need not be over loaded with the complete information but just an over view of the

essential and specific information would be enough.

It is evident from the study that the consumers do not tend to look at the same information; hence, it is required to update the

information regularly.

According to the study, the maximum amount of time is spent on buying vegetables. This implies that the consumer is more

conscious about the vegetables that one consumes. Hence if in providing brief information about the vegetables is extended then

this can be proven beneficial to the consumers.

When it comes to choosing cereals pulses and oil the study shows that the majority of the respondents buy based on their prior

experience. Therefore, in order to tackle this issue the retail stores should formulate the strategy to attract these consumers through

visual displays providing them a better way to choose their products.

CONCLUSION

Visual impact plays a vital role when a consumer enters a retail store. It is one of the most important factors of retail

merchandising. The visual information is gathered in less than a split second. Using the visual displays as a component to

influence, educate and create awareness of the existing products to help choose the consumers better and right products. This in

turn helps building credibility in the mindsets of the consumers. In addition, it helps to educate consumers not just about the





existing but new products as well. Facilitating the right kind of information, with right amount of specific and essential

information will help the consumer in taking the right decision while making their purchase valuable.

In today’s world, people are very much conscious about their health. People are aware of the ill effects of Genetically Modified

crops, industrial crops and advantages of organic products, filtered and not refined oil that is supposed to have harmful chemicals

left behind from the purification process. It would only add to this movement to have visual displays, which provide accurate and

reliable information to the consumers, which will give them the power of informed decision making when it comes to their health

at the end of the line, through conscious purchasing of essential commodities like pulses, rice, cereals and oil.

REFERENCES

1. Kotler, P. & Keller, K. (2011). Marketing Management (14th Edition). London: Pearson.

2. Morgan, T. (2008). Visual Merchandising: Windows and In-store Displays for Retail. Laurence King: London

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An Indian Perspective. International Journal of Business and Management Studies, 1(1), 267-277. ISSN, 2158-1479.

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Image and Shopper Behaviours in Home Furnishings Retail Setting. European Journal of Business and Management,

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23. Retrieved from

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THE EFFECTS OF RURAL MARKETING STRATEGIES OF PURCHASE DECISION MAKING

Dr. S. Prasad33

ABSTRACT

Indian rural market is attractive as well as challenging. It offers huge opportunities to the marketers as it is in developing

stage and account 80 per cent consumers. The lifestyles of rural consumers have undergone wonderful changes due to

growing incomes, increasing literacy rate, exposure TV and interaction with the urban counterpart. Liberalization of trade, on

one side, opened up new vistas to the marketers and on the other side, posed stiff competition. The present paper is an attempt

to understand the profile of the consumers in rural market. The effects of rural marketing strategies on purchase decision-

making.

KEYWORDS

Consumer Preference, FMCG Products, Rural Marketing etc.

RURAL MARKETING IN INDIA

The concept of Rural Marketing in India Economy has always played an influential role in the lives of people. In India, leaving

out a few metropolitan cities, all the districts and industrial townships are connected with rural markets. The rural population in

India accounts for around 627 million, which is exactly 74.3 percent of the total population. The rural market in India brings in

bigger revenues in the country, as the rural regions comprise of the maximum consumers in this country. The rural market in

Indian economy generates almost more than half of the country's income. Rural marketing is the new buzzword as the new

marketing mantra for the survival and the growth of and the success forcing companies to go rural. The most popular strategies to

hit the rural market have been the small packaging strategies i.e. sachets products. Sachets meet the needs of rural consumers in

several ways. Sachets are inexpensive, they occupy a small amount of space, and they allow consumers to experiment with new

products that they may never have tried before.

Sometimes, rural marketing is confused with agricultural marketing – the later denotes marketing of produce of the rural areas to

the urban consumers or industrial consumers, whereas rural marketing involves delivering manufactured or processed inputs or

services to rural producers or consumers. The consumer is the king and all actions should start with his view in mind. Consumer

behaviour “is the study of the processes involved when individuals or groups select, purchase, use, or dispose or products,

services, ideas, or experiences to satisfy needs and desires.

Rural Consumer Behaviour refers to the buying behaviour of final consumers - individuals and households who buy goods and

services for personal consumption. All of these final consumers combined make up the consumer market. The consumer market in

this case is Rural India. Consumers in this huge segment have displayed vast differences in their purchase decisions and the

product use. Villagers react differently to different products, colours, sizes, etc. in different parts of India. Thus, it is important to

study the thought process that goes into making a purchase decision, so that marketers can reach this huge untapped segment.

“Rural marketing is defined as a function that manages all activities involved in assessing, stimulating and converting the

purchasing power of rural consumers into an effective demand for specific products and services and moving these products and

services to the people in rural areas to create satisfaction and a better standard of living and there by achieving organizational

goals” (Iyer 2010). The process should be able to straddle the attitudinal and socio-economic disparity between the urban and rural

customers.

Figure-1


33Assistant Professor, Department of International Business and Commerce School of Management, Alagappa University, Tamil

Nadu, India, [email protected]






Urban-to-Rural (U 2 R): A major part of rural marketing falls into this category. It includes the transactions of urban marketers

who sell their goods and services in rural areas, like pesticides, fertilizers, seeds, FMCG products, tractors, bicycles, consumer

durables, etc.

Rural-to-Urban (R 2 U): Transactions in this category fall under agricultural marketing where a rural producer seeks to sell his

products in an urban market, like seeds, fruits and vegetables, milk and related products, forest produce, spices, etc.

Rural-to-Rural (R 2 R): This includes the activities that take place between two villages in close proximity to each other, like

agricultural tools, handicrafts and bullock carts, dress materials, etc.

NEED FOR STUDY

The present study has revealed the extent to which rural consumers living around the rural areas. The consumer requires the

product quality, price realization, channels of distribution, availability and promotion. This study attempts to ascertain the view of

the rural consumer is pre-purchasing behaviour variables such as attitude towards brand preference and purchase decision-making.

There were studies about the marketing strategies obtained through the various companies such as P&G, ITC, Colgate Palmolive

which focuses on marketing to urban but the study on rural marketing strategies were found to be rare but Hindustan Unilever

Limited is a company which caters to the needs of rural market and Hindustan Unilever Limited has a wide range of product mix,

many people are prefer to buy a HUL products. Since, this study could supplement the needs of rural marketing strategies of HUL

such as Small unit packaging strategies, Premium products strategies through this fulfills the need for the study on rural marketing

strategies on Hindustan Unilever Limited

STATEMENT OF PROBLEM

Rural marketing includes all these activities of assessing, stimulating and converting the rural purchasing power into an effective

demand for specific products and with the aim of raising the standard of living. Rural marketing is any marketing activity in which

one dominant participant from rural areas.

Various factors influence the purchase decisions of the consumers, packaging, brand name, quality, price and promotions are

influence the rural purchase. The main problem faced by the rural consumers namely lack of distribution, lack of availability of

the products, limited of the choice of the products. Hence, the researcher has to analyze these problems faced by the rural

consumers.


Skinner (1990) opined that when a consumer purchases an unfamiliar expensive product he uses a large number of criteria to

evaluate alternative brands and spends a great deal of time seeking information and deciding on the purchase. The type of decision

making used varied from person to person and from product to product.

Bronnenberg et al. (1996) in their article observed that, it is becoming increasingly evident that a consumers brand choice

decision in low involvement categories does not involve full search, evaluation and comparison of price of all brands available at

the point of purchase. The authors proposed a two stage choice in which consumer first identifies a subset of brands within the

universal set of brands called the choice set and then evaluates only those brands that are in the choice set relative to one another

to select a single brand.

Venkateswaralu et al (2000) opined that the role of women in decision making for consumer non-durables is high and in the case

of durables, both husband and wife decide together.

Gaur et al (2002) observed that, consumers buying behaviour normally should include the less observable decision process that

accompany consumption including where, how often and under what conditions consumers make their purchase of desired goods

and services.

Vikas Saraf (2003) opined that, brands are successful because the people prefer them to ordinary products. In addition to the

psychological factors, brands give consumers the means whereby they can make choice and judgment. Customers can rely on

chosen brands to guarantee standard quality and services. People believe that the brand itself is something that changes consumer

behavior.





SCOPE OF STUDY

The researcher has studied about the rural consumer behaviour, brand preferences and pre purchasing behavior. The researcher

studied about the strategies like small unit packaging strategies, premium product strategies of Hindustan Unilever Limited. The

geographical coverage of the study is limited to Manamadurai only.

OBJECTIVES OF STUDY

To study the demographic profile of the consumers in rural market.

To study the effects of rural marketing strategies on purchase decision-making.

HYPOTHESIS

There is no significant relationship between the demographic variables viz, age, sex, education, occupation and income

of the consumers and the brand preferences of the products in rural consumers.

There is no significant relationship between the effects of rural marketing strategies on purchase decision making.

Research Design

Research design used in the study was Descriptive research design. A descriptive research design is the one, which is description

of the state of affairs, as it exists at present. It includes survey and fact finding enquiries of different kinds. The researcher has no

control over the variables.

Research Methodology

The study were based on both primary and secondary data for these purpose of collecting primary data a structured questionnaire

is prepared on the basis of literature on the subject. The questionnaire consists of questions about personal data of the consumers,

sources of information for pre-purchase behaviour, brand preferences, small unit packaging strategies and the problems of rural

marketing. Based on the data collected, the final format of the questionnaire was prepared then the researcher had interviewed

each respondent and recorded the information supplied by them with respect to every item in the questionnaire.

Sampling Technique

The researcher has adapted Mall Intercept method of sampling which is one of the Non-probability sampling methods to select the

sample respondents. A Mall-intercept method is a method whereby respondents are intercepted in shopping malls. The process

involves interacting with the shoppers, screening them for appropriateness, and administering the survey on the spot or inviting

them to the shopping place to complete the questionnaire.

Sample Size

The target sample for this study is 160 respondents in various areas of Manamadurai that was done independently and they are

further divided into 80 males and 80 females’ that lies in age group of 20-40 including business class, service class, students and

house wives, two of the questionnaires were in completed. So that the sample size is 158. The formula for calculating the sample

size is as follows,

Z2 x (p) x (1 – p) (1.96)2 x 0.5 x 0.5

SS = = = 160

C2 (0.008)2

SS = Sample Size

Z = Z-value 1.96 for a 95 percent confidence level

P = Percentage of population picking a choice

C = Confidence interval

Statistical tools used in the study

The collected data have been processed with the help of appropriate statistical tools using SPSS package the tools include

Descriptive statistics, Analysis of Variance, Karl Pearson’s Correlation Co-efficient, and Factor Analysis.

Descriptive Statistics on Demographic profile of the Respondents

Demographic Profile includes gender, age, occupation, monthly income, marital status, educational qualifications, total members

of the family, and total employed persons of the family and monthly total family income.





Table-1: Demographic Profile of Respondents

Demographic Variable N Frequency Percentage Mean Standard

Deviation

Gender

Male

Female

158

60

98

38

62

1.62

0.487

Age

1.Below 20years

2.20-30 years

3.30-39 years

4.40-49 years

5.above 50 years

158

5

100

9

20

24

3.2

63.3

5.7

12.7

15.2

2.73 1.197

Occupation

a. Government Employee

b. Private Employee

c. Student

d. Businessmen / Women

e. Others

158

6

28

70

15

39

3.8

17.7

44.3

9. 5

24.7

3.34 1.143

Monthly Income

1.Below Rs.5,000

2.Rs.5000-RS.10,000

3.Rs.10,000-Rs.20,000

4. above Rs.20,000

158

24

95

9

30

15.2

60.1

5.7

19.0

2.28 0.945

Marital Status

1.Married

2.Unmarried

158

62

96

39.2

60.8

1.61 0.490

Educational Qualification

1.Illiterate

2.Upto +2

3.Graduate

4.Post Graduate

5.Other Higher Qualification

158

9

34

53

54

8

5.7

21.5

33.5

34.2

5.1

3.11 0.99

Total members of the family

1.Below 3 members

2.3 to 5

3.5 to 7

4.Above 7 members

158

9

115

25

9

5.7

72.8

15.8

5.7

2.22 0.632

Employed persons of your family

1.Below 3 members

2.Above 3 members

158

53

105

33.5

66.5

1.66 0.474

Total Family Income

1.Below Rs.50,000

2.Rs.50,000-

158

40

118

25.3

74.7

1.75 0.436


From the above table, it represents the descriptive statistics of demographic variables such as Gender, Age, Occupation, Monthly

income, Educational Qualification, Marital Status, and Members of the family, employed persons of the family, total family

income. Among the gender, variable 62% of the respondents belong to female category and 38% of the respondents belong to

male category. The mean score of the gender category was found to be 1.62 and standard deviation of the gender category was

found to be 0.487.

Among the age category 63.3% of the respondents belong to 20-29 years, 15.2% of the respondents belong to 50 years above,

12.7% of the respondents belong to 40-49 years, 5.7% of the respondents belong to 30-39 years and 3.2% of the respondents

belong to below 20 years. The mean score of the age groups was found to be 2.73 and standard deviation of the age groups

category was found to be 1.197.

Among the occupation category 44.3% of the respondents belong to the students, 24.7% of the respondents belong to the other

occupations, 17.7% of the respondents belong to private employee, 9.5% of the respondents belong to the business men/women,





and 3.8% of the respondents belong to the govt. employee. The mean score of the occupation category was found to be 3.34 and

the standard deviation of the occupation category was found to be 1.143.

Among the monthly income 60.1% of the respondents belong to Rs.5000-Rs.10,000, 19.0% of the respondents belong to above

Rs.20,000, 15.2% of the respondents belong to below 5000 and 5.7% of the respondents belong to Rs.10,000-Rs20,000. The mean

score of the occupation category was found to be 2.28 and standard deviation of the gender category was found to be 0.945.

Among the marital status, 60.8% of the respondents relate to unmarried and the remaining 39.2% of the respondents relate to

married status. The mean score of the marital status was found to be 1.61 and the standard deviation of the marital status category

was found to be 0.490.

Among the Educational Qualification category 34.2% of the respondents belong to post graduates, 33.5% of the respondents

belong to graduates, 21.5% of the respondents belong to up to HSC 5.7% of the respondents belong to illiterates and the

remaining 5.1% of the respondents belong to other higher qualifications. The mean score of the educational qualifications was

found to be 3.11 and the standard deviation of the educational qualifications category was found to be 0.990.

Among the total members of the family category 72.8% of the respondents belong to 3 - 5, 15.8% of the respondents belong to 5 -

7, and the remaining 5.7% of the respondents belong to both the below 3 members and the above 7 members. The mean score of

the total members of the family category was found to be 2.22 and the standard deviation of the total members of the family was

found to be 0.632.

Among the employed persons of the family category 66.5% of the respondents belong to family size of above 3 members and

33.5% of the respondents belong to below 3 of the employed persons. The mean score of the employed persons of the family was

found to be 1.66 and the standard deviation of the members was found to be 0.474.

Among the monthly total family income category, 74.7% of the respondents gets Rs.50,000 - Rs.1,00,000 and 25.3 of the

respondents gets below Rs. 50,000. The mean score of the monthly total family income was found to be 1.75 and the standard

deviation of the members was found to be 0.436.

Table-2: Garret Scores for the Products sold by HUL

Products

Rank

1 2 3 4 Garrets Score Garrets Rank

Soaps 4818 2336 1971 2409 11534 1

Shampoos 1539 2508 2508 2451 9006 2

Toothpaste 516 1419 2322 2537 6794 3

Cosmetics 1161 1323 891 891 4266 4


Table 4.18 portrays the garret scores the highest score is awarded to the product “Soap” is ranked as the product first, followed by

the “Shampoo”. The lease score is awarded to “Cosmetics” and hence it is inferred that the “Soaps” is the major products provided

by the Hindustan Unilever limited.

Table-3: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .540

Bartlett's Test of Sphericity Approx. Chi-Square 425.274

D.f. 36

Sig. .000


The KMO measures the sampling adequacy, which should be greater than 0.5 for a satisfactory factor analysis to proceed. If any

pair of variables has a value less than this, consider dropping one of them from the analysis. The off-diagonal elements should all

be very small (close to zero) in a good model. Looking at the above table, the KMO measure is 0.540.

Bartlett's test is another indication of the strength of the relationship among variables. This tests the null hypothesis that the

correlation matrix is an identity matrix. An identity matrix is matrix in which all of the diagonal elements are 1 and all off

diagonal elements are 0. You want to reject this null hypothesis. From the same table, we can see that the Bartlett's test of

sphericity is significant That is, its associated probability is less than 0.05. In fact, it is actually 0.000, i.e. the significance level is

small enough to reject the null hypothesis. This means that correlation matrix is not an identity matrix.





Factor Analysis for Premium Product Strategies

Table-4: Rotated Component Matrixa

Component

Factors 1 2 3

Like premium .802 .192 -.038

Identify .376 .012 -.839

Available .244 .692 -.109

Mass product .297 .239 .852

Feel unique .495 .625 .145

Abundant good -.188 .629 .246

Price of the products .549 -.523 .210

Usage premium .846 -.032 -.109

Price high .006 .658 .124

Note: Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.


In this study, the factor analysis has been used to find the dominant variables influenced in premium product strategies.

Through the analysis “Like premium” (0.802), price of the products (0.549) and usage premium (0.846) are identified in the first

factor. Usage of the premium products has the highest significant positive loading. The factor one is characterized as the good.

The second factor includes the variables namely Availability (0.692), feel unique (0.625), Abundant good (0.629) and price high

(0.658) are identified in the second factor. Availability of the products has been highest significant positive loading. The second

factor characterized as a good.

The third factor consists of the variable mass product (0.852) only one variable is identified in the third factor it has the highest

significant positive loading. The factor three is characterized as the good.

Through the factor analysis, it is inferred that most of the respondents and their product preference have significantly improved.

Out of nine factors, eight factors are identified and these factors are influenced on the premium product strategies.

Factor Analysis for Small Unit Packaging Strategies

Table-5: Rotated Component Matrixa

Component

Factors 1 2 3

Sachets -.165 .679 .258

Less quantity .567 .348 .630

Feel cheaper -.066 .171 .899

Abundantly available -.345 .609 .357

Comfortable to buy .424 .486 -.558

Packing at small size .073 .764 -.068

Small packets -.854 .084 .118

Disturb ecology .800 -.124 .002

Note: Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.






In this study, the factor analysis has been used to find out the dominant variables influenced in the small packaging strategies.

Through the analysis “less quantity” (0.567) and packets disturb ecology (0.800) have identified the first factor. Small packets

disturbs ecology has the highest significant positive loading. The factor one is characterized as good.

The second factor includes the variables namely sachets (0.679), abundantly available (0.609) and packing at small size (0.764)

are identified as the second factor. Packing at small size has the highest significant positive loading. The second factor is

characterized as the good for use.

The third factor includes the variables namely less quantity (0.630) and feel cheaper (0.899) are identified the third factor. Small

packaging feel cheaper has the highest significant positive loading. The third factor is characterized as good to buy.

Through the factor analysis, it is inferred that most of the respondents and their thought about the small packaging products have

significantly improved. Out of eight factors, seven factors are identified and these factors are influenced on their small packaging

strategies.

Table-6: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .583

Bartlett's Test of Sphericity Approx. Chi-Square 322.402

D.f. 28

Sig. .000


The KMO measures the sampling adequacy, which should be greater than 0.5 for a satisfactory factor analysis to proceed. If any

pair of variables has a value less than this, consider dropping one of them from the analysis. The off-diagonal elements should all

be very small (close to zero) in a good model. Looking at the above table, the KMO measure is 0.583.

Bartlett's test is another indication of the strength of the relationship among variables. This tests the null hypothesis that the

correlation matrix is an identity matrix. An identity matrix is matrix in which all of the diagonal elements are 1 and all off

diagonal elements are 0. You want to reject this null hypothesis. From the same table, we can see that the Bartlett's test of

sphericity is significant That is, its associated probability is less than 0.05. In fact, it is actually 0.000, i.e. the significance level is

small enough to reject the null hypothesis. This means that correlation matrix is not an identity matrix.

Analysis of Variance Showing the Relationship between the Pre-Purchasing Behaviour and the Educational Qualification

H0: There is no significant difference between the pre-purchasing behaviour and the educational qualification of the respondents

Table-7

Educational Qualification N Mean Std. Deviation Std. Error F Sig.

Illiterate 9 3.43 .000 .000

upto +2 34 3.40 .248 .043

Graduate 53 3.20 .468 .064 4.340 .002

Post Graduateab 54 3.24 .272 .037

Other Higher Qualification 8 2.93 .076 .027

Total 158 3.26 .351 .028


Hence, we conclude that there is no significant difference between the educational qualifications and the factors to be considered

before purchasing the particular brand, which is significantly differentiated with @ 1% level.

From the above table F value (13.611) is found to be significant. It shows that there is a significant difference between the

educational qualifications and the factors to be considered before purchasing the particular brand and hence the null hypothesis is

rejected.





From the above table represents, the homogeneous subset of Educational qualification of the respondents with regard to pre-

purchasing behaviour and the most influence factor of the educational qualification is other higher qualification.

Analysis of Variance Showing the Relationship between the Monthly Income and the Pre-Purchasing Behaviour

H0: There is no significant relationship between the monthly income and the pre-purchasing behavior

Table-8

Monthly Income N Mean Std. Deviation Std. Error F Sig.

below Rs.5000 24 21.79 1.503 .307

Rs.5000-Rs.10,000ab 95 23.68 2.344 .241

Rs.10,000-Rs.20,000 9 22.22 2.108 .703 13.661 0.000

Above Rs.20,000 30 21.00 2.244 .410

Total 158 22.80 2.458 .196


From the above table, F value 13.661 is found to be significant @ 1% level. Hence, the null hypothesis is rejected and there is a

significant relationship between the monthly income and the pre-purchasing behaviour. From the Duncan Multiple Range Test it

is found that the respondents who earn up to Rs.5000-Rs.10000 were found to be the most influencing factor among the other

monthly income of the respondents.

FINDINGS

The majority of the respondents belong to female category.

The majority of the respondents are in the age group of 20-30 years.

The majority of the respondents are students.

The majority of the respondents earn a monthly income of Rs.5000-10,000.

The majority of the respondents are postgraduates.

The majority of the respondents belong to family size of 3-5 members.

Head of the family play an important role for buying HUL products on behalf of the family. In Most of the families,

house wife and the children are influencers to buy products followed by the head of the household who decides to buy

the products

Through the factor analysis, it is inferred that most of the respondents and their product preference have significantly

improved. Out of nine factors, eight factors are identified and these factors are influenced on the premium product

strategies.

Through the factor analysis, it is inferred that most of the respondents and their thought about the small packaging

products have significantly improved. Out of eight factors, seven factors are identified and these factors are influenced

on their small packaging strategies.

There is a significant relationship between the educational qualification and the lack of consumer education.

There is a significant relationship between the monthly income and the pre-purchasing behaviour of the consumers

CONCLUSION

Rural marketing has witnessed an increase in the buying power of consumers, accompanied by their desire to upgrade the standard

of living. The marketing mix of many companies is now being tailored to rural taste and life style. Indian rural market is

fascinating as well as challenging. Rural marketing has a great potential for growth in future. Rural India is becoming more

accessible because of ambitious rural road connectivity programme (Prime Minister Gram Sadak Yojana), satellite TV, internet,

mobiles and modern automobiles. Today, rural consumer has become aspirant, quality conscious and well acquainted with

branded products and services.

REFERENCES

1. European Association for Comparative Economics Studies (EACES) 9th Bi-Annual

2. Neeraj, Jha. (2000, June 19). Gung-ho on rural marketing. The Financial Express.

3. Ravindranath, V. Badi, & Naranyansa, V. Badi. (2004). Rural Marketing. Himalaya Publishing.





4. Saini, D. R. (1972). Strategy of Rural Marketing, 2(5), 22-25.

5. Pradeep, Kashyap, & Sidharta, Raut. (2010). Rural Marketing, pp. 3, 11, 25

6. Schiffman, L., & L., Knauk. (2000). Consumer Behavior (7th Edition). Prentice Hall.

7. Kotler, P. Principal of Marketing.13e south Indian context.

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www.thehindubusinessline.in%20

http://www.indiatelevision.com/

http://www.indiatelevision.com/

http://www.ruralmart.com/

http://www.ruralmart.com/

http://www.ijocam.in/uploads/3/4/0/0/3400848/ijocam_sep_2015_volume_2_issue_4_interior_final.95-100....

http://www.ijocam.in/uploads/3/4/0/0/3400848/ijocam_sep_2015_volume_2_issue_4_interior_final.95-100....

http://www.slideshare.net/rajlakshmi2611/rural-marketing-ppt-15774354

http://www.managementparadise.com/dhananjaysharma/documents/14109/blackbook-project-on-rural-marketi...

http://www.managementparadise.com/dhananjaysharma/documents/14109/blackbook-project-on-rural-marketi...

http://www.readbag.com/sapientindore-sm-mba-semiv-405m-rural-consumer-behavior

http://www.insead.edu/facultyresearch/research/details_articles.cfm?id=2709


http://www.coolavenues.com/marketing-zone/rural-marketing%3A-challenges-opportunities-%2526-strategi...

http://www.coolavenues.com/marketing-zone/rural-marketing%3A-challenges-opportunities-%2526-strategi...







A STUDY DETERMINANT OF CUSTOMER EXPERIENCE IN THE SELECT

RETAIL FORMATS IN CHITTOOR DISTRICT

R. Jesse Rezin Grand34 L. Vincent Raj Kumar35 Dr. N. Chandrika36

ABSTRACT

Retail industry can be broadly classified into two categories namely- organized and unorganized retail. As the Indian retailing

is getting more and more organized various retail formats are emerging to capture the potential of the market. Now that we

have entered a new era, it is necessary to shift attention from the features-and benefits approach advocated by traditional

marketing to customer experiences. Understanding and recognizing the importance of customer experience is essential to

withstand in highly competitive and ever changing retail environment. Knowledge of the various determinants of customer

experience will give the retailers an edge over the competitors.

There are several determinants of the customer experience, including social environment, service interface, retail atmosphere,

stores assortment, price, customer experience in alternate channels, retail brand and experience.

This paper provides retailers with specific knowledge of the determinants that the customer considers being most important

and significant contributor to an enhanced customer experience. It is suggested that the retailers take note of the significant

predictors while developing retail format strategies. It also identifies the demographic characteristics of the customers.

Understanding the customer and the key determinants of customer experience are critical to the retailer in order to withstand

the competition in the Indian market.

The aim of the study is to contribute to the knowledge of customer experience by studying the various determinants and to

show the influence of various determinants of customer experience in select retail formats.

KEYWORDS

Branded Stores, Customer Experience, Price, Social Environment and Super Markets etc.

RETAIL INDUSTRY: AN OVERVIEW

Retail industry can be broadly classified into two categories namely-organized and unorganized retail. Organized retail -

Organized traders/retailers, who are licensed for trading activities and registered to pay taxes to the government. Unorganized

retail – It consists of unauthorized small shops - conventional Kirana shops, general stores, corner shops among various other

small retail outlets - but remain as the radiating force of Indian retail industry.

The retail market is expected to reach a whooping Rs. 47 lakh crore by 2016-17, as it expands at a compounded annual growth

rate of 15 per cent, accordingly to the ‘Yes Bank - Assocham’ study. The retail market, (including organized and unorganized

retail), was at Rs. 23 lakh crore in 2011-12. According to the study, organized retail, that comprised just seven per cent of the

overall retail market in 2011-12, is expected to grow at a CAGR of 24 per cent and attain 10.2 per cent share of the total retail

sector by 2016-17. The global retailing industry had total revenue of $10,526.1 billion in 2010, representing a compound annual

growth rate (CAGR) of 4.3% for the period spanning 2006-2010.

The food and grocery segment was the most lucrative segment in 2010, with total revenue of $6,630.2 billion, which is equivalent

to 63% of the industry value. The global retailing industry grew by 3.9% in 2010 to reach a value of $10,526.1 billion. The

compound annual growth rate of the industry in the period 2006–10 was 4.3%. Retailing has played a major role in the global

economy. In developed markets, retailing is one of the most prominent industries. In 2008, the US retail sector contributed 31%

to the GDP at current market prices. In developed economies, organized retail has a 75-80% share in total retail as compared with

developing economies, where unorganized retail has a dominant share. In 2008, the slowdown in the global economy and credit

crunch led to decrease consumer spending. Despite difficult economic conditions, the global retail industry continued to grow,

building on the bounce back in growth that started in 2010.

34Assistant Professor, Annamacharya Institute of Technology and Sciences, Andhra Pradesh, India, [email protected] 35Assistant Professor, Annamacharya Institute of Technology and Sciences, Andhra Pradesh, India, [email protected] 36 Associate Professor & Head, Annamacharya Institute of Technology and Sciences, Andhra Pradesh, India, [email protected]








KEY DRIVERS OF THE INDIAN RETAIL INDUSTRY

Emergence of nuclear families.

An increase in the double-income household’s trend.

Large working population.

Reasonable Real estate prices.

Increase in disposable income and customer aspiration.

Demand as well as increase in expenditure for luxury items.

Growing preference for branded products and higher aspirations.

Growing liberalization of the FDI policy in the past decade.

Increasing urbanization.

Rising affluence amid consumers.

BOTTLENECKS

A long way to meet international standards.

Lack of efficient supply-chain management.

Lack of required retail space.

No fixed consumption pattern.

Shortage of trained labor.

Lack of proper infrastructure and distribution channel.

GOVERNMENT INITIATIVES

The Government of India has taken various initiatives to improve the retail industry in India.

The Ministry of Urban Development has come out with a Smart National Common Mobility Card (NCMC) model to

enable seamless travel by metros and other transport systems across the country, as well as retail purchases.

IKEA, the world’s largest furniture retailer, bought its first piece of land in India in Hyderabad, the joint capital of

Telangana and Andhra Pradesh, for building a retail store. IKEA’s retail outlets have a standard design and each

location entails an investment of around Rs 500–600 crore (US$ 75–90 million).

The Government of India has accepted the changes proposed by Rajya Sabha select committee to the bill introducing

Goods and Services Tax (GST). Implementation of GST is expected to enable easier movement of goods across the

country, thereby improving retail operations for pan-India retailers.

The Government has approved a proposal to scrap the distinctions among different types of overseas investments by

shifting to a single composite limit, which means portfolio investment up to 49 per cent will not require government

approval nor will it have to comply with sectoral conditions as long as it does not result in a transfer of ownership

and/or control of Indian entities to foreigners. As a result, foreign investments are expected to be increase, especially in

the attractive retail sector.

INVESTMENT SCENARIO

The Indian retail industry in the single-brand segment has received Foreign Direct Investment (FDI) equity inflows totaling US$

344.9 million during April 2000–September 2015, according to the Department of Industrial Policies and Promotion (DIPP).

With the rising need for consumer goods in different sectors including consumer electronics and home appliances, many

companies have invested in the Indian retail space in the past few months.

Amazon India expanded its logistics footprint three times to more than 2,100 cities and towns in 2015, as Amazon.com

invested more than US$ 700 million in its India operations since July 2014.

Adidas AG, renowned for its Adidas and Reebok sports brands, has become the first foreign sports company to get

government approval to open 100 percent foreign-owned stores in India.

Wal-Mart India plans to add 50 more cash-and-carry stores in India over the next four to five years.

Aeropostale, an American teen fashion retailer, has chosen to enter India over China, and expects India to be among its

top three markets over the next four years with revenue target of Rs 500 crore (US$ 75 million).

Opinio, a hyperlocal delivery start-up, has raised US$ 7 million in a Series-A funding from Gurgaon-based e-commerce

fulfillment service firm Delivery along with investment from Sands Capital and Accel Partners.

Textile major Arvind Limited has announced a partnership with Sephora, owned by LVMH Moet Hennessy Louis

Vuitton, a French luxury conglomerate, in order to enter into the beauty and cosmetics segment.

Mobile wallet company MobiKwik has collaborated with Jabong.com to provide mobile payment services to Jabong’s

customers.





DataWind collaborated with HomeShop18 to expand its retail footprint in the country. Under the partnership,

HomeShop18 and DataWind would jointly launch special sales programmes across broadcast, mobile and internet

media to provide greater access to the latter is tablet range.

Fashion And You has opened three distribution hubs in Surat, Mumbai and Bengaluru to accelerate deliveries.

Abu Dhabi-based Lulu Group plans to invest Rs 2,500 crore (US$ 375 million) in a fruit and vegetable processing unit,

an integrated meat processing unit, and a modern shopping mall in Hyderabad, Telangana.

Aditya Birla Retail, a part of the US$ 40 billion Aditya Birla Group and the fourth-largest supermarket retailer in the

country, acquired Total hypermarkets owned by Jubilant Retail. With an aim to strengthen its advertising segment,

Flipkart acquired mobile ad network AdiQuity, which has a history of mobile innovations and valuable experience in

the ad space.

US-based Pizza chain Sbarro plans an almost threefold increase in its store count from the current 17 to 50 over the

next two years through multiple business models.

DEFINITION OF VARIABLES

Customer Experience (CE): Is the internal and subjective response customers have to any direct or indirect contact with a

company. Direct contact generally occurs in the course of purchase, use, and service and is usually initiated by the customer.

Indirect contact most often involves unplanned encounters with representatives of a company’s products, service or brands and

takes the form of word-of-mouth recommendations or criticisms, advertising, news reports, reviews and so forth (Meyer and

Schwager 2007).

Social Environment (SE): The social environment refers to how customers interact with their family, friends or other customers.

A better social environment leads to a positive customer experience. In this research, social environment is measured in terms of

reference groups, customer-to-customer interaction and crowding.

Service Interface (SI): Refers to the interaction between the customer and the service person and the impact of technology

(Verhoef et al 2009). The study is carried out with the assumption that an excellent service interface would influence customer

experience positively. Service interface is measured in terms of influence of service person and technology.

Retail Atmosphere (RA): The atmosphere of the retailer can have a significant impact on the experience of the customer. The

retail atmosphere is measured in terms of design, temperature and music.

Stores Assortment (SA): Assortment can be described as the ability of the retailer to offer a wide array of products to the

customer with variety, uniqueness, and quality (Verhoef et al 2009).

Price: The factor of price in the concept of customer experience is defined by the way customers perceive loyalty programs and

discount policies. Music and design influence intention to patronize a retail store and how much time and money is spent in the

retail unit.

Alternative Channels (AC): According to Weiss et al (2003) when a number of channel options are available to the customer,

they may rotate channel usage and thus experience of one channel is most likely to affect the experience in the other channel.

Retail Brand (RB): Customers’ brand perceptions may influence their customer experience. Fitzsimons et al (2008) found that

the type of brand and customers’ perceptions of the brand could influence their behavior.

Previous Customer Experience (PE): According to Velazquez et al (2010), customers with a positive experience of the product

or service at a previous instant are more committed to the retailer. The study is carried out with the premise that experience

influences customer experience.

PROBLEM STATEMENT

Creating greater customer experience seems to be one of the central objectives in today is retailing environments. Retailers

around the globe have embraced the concept of customer experience management, with many incorporating the notion into their

mission statements.

In this study, an attempt is made to discuss the conceptual model, antecedents of the customer experience construct. The research

problem, therefore, is to understand the contributors to customer experience in the retail formats of Chittoor district.





SCOPE OF THE STUDY

The current study focuses exclusively on the organized retailing sector in India. The study is restricted to the modern retail store

formats namely supermarket, specialty stores and branded stores. The study is carried out in Chittoor district, which is one of the

most energetic markets of Andhra Pradesh.

OBJECTIVES OF STUDY

To identify the determinants of customer experience in selected retail formats.

To analyze the relationship between the determinants and the customer experience.

To suggest measures to improve customer experience for the selected retail formats.


According to Jhamb and Kiran (2012) carried out a study to understand the relationship between the choice of retail formats,

based on products attributes, store attributes, consumers’ demography and retail marketing strategies. The study has designed a

framework for the choice of modern retail formats from consumer and retailer’s perspectives. Carpenter and Brosdahl (2011)

explored the choice of retail format among the male shoppers. Findings suggest direct and positive relationships between

department store patronage and shopping enjoyment, brand loyalty, price competitiveness, knowledgeable salespeople and

presence of well-known brands. According to Ghosh et al (2010), the phenomenal growth of retail in India is reflected in the

rapid increase in number of supermarkets, departmental stores and hypermarkets in the country. The study addressed issues

related to store attributes and their relevance in the store selection process. Huddleston (2009) has drawn a comparison in

customer perceptions related to satisfaction with conventional grocery stores as compared to specialty grocery stores. Chavadi

and Kokatnur (2010) studied various factors, which drove the customers into a shopping mall and the effectiveness of sales

promotion of those malls. Price discount, offers, gifts and samples are the four promotional tools chosen for this study.

HYPOTHESIS

Hypothesis is tested separately for Super Markets, Specialty Stores and Branded Stores.

H1: Social environment influences customer experience.

H2: Service interface affects customer experience.

H3: Retail atmosphere affects customer experience.

H4: Product assortment has an effect on customer experience.

H5: Price influences customer experience.

H6: Experience in alternate channels influences customer experience.

H7: Retail brand has an effect on customer experience.

H8: Experience affects customer experience.

LIMITATIONS OF STUDY

The sample of the study is only limited to 3 retail formats of Chittoor district of Andhra Pradesh State and thus the

result may not represent the entire State.

Sample size is 120, from three selected retail formats.

The research is mainly based on primary data and so it would be depending on awareness and willingness of the

customers.


Sources of Data: Tull and Hawkins (1987) list three basic data collection approaches in marketing research namely secondary

data, survey data and experimental data. Both secondary and survey data collection approaches were used for this study.

Data Collection Instrument: Questionnaire Design.

Sampling Design: Convenience sampling a method of non-probability sampling is proposed for this particular study. The

respondents were approached at their home and asked to complete the questionnaire.

Sample Size: The main survey was carried out with 120 respondents and 105 questionnaires were found to be complete of which

40 belong to the supermarket category, 28 belong to specialty store category and 37 belong to branded store category.





Regression Equation (CE) =a + 1 SE + 2 SI + 3 RA + 4 AS + 5 PR + 6 AC + 7 RB+ 8 PE

CE-Customer Experience

SI- Service Interface

RA-Retail Atmosphere

SA-Stores Assortment

PR-Price

AC-Alternative Channels

RB- Retail Brand

PE-Past Experience

DATA ANALYSIS FRAMEWORK

Statistical Package for Social Sciences used for the analysis of data. Different multivariate statistical techniques are used to test

the proposed hypotheses. Significance tests and estimates were used to evaluate the magnitude and direction of the effect(s) of

each of the determinants and the customer experience for the selected retail formats. Multiple regressions were used to test the

relationship between dependent and independent variables and to check for the significance of the factors and the hypothesized

causal paths.

Analysis of Data

By using SPSS software, suitable statistical tools and techniques have been working to test and interpret the data as follows:

Multiple Regression Analysis

A regression is a statistical tool used to find out the relationship between two or more variables. In simple regression, there will

be only two variables, one variable being caused by the behavior of other variable. The former is defined as an independent

variable and the latter is defined as a dependent variable. When there are two are more independent variables, the analysis that

describes the relationship between the two is called multiple regressions. The main objective of using this technique is to predict

the variability of the dependent variable based on its co variance with all the independent variables. It is useful to predict the level

of dependent phenomenon through multiple regression analysis models, if the level of independent variable is given.

Supermarket

A supermarket is defined as a form of self-service grocery store, offering a wide variety of food and household merchandise,

organized into departments, which are larger, and has a wider selection than a traditional grocery store.

Table-1: Predictor Effects and β Estimates for Determinants on

Customer Experience for Supermarket


Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

(Constant) .477 .230 2.078 .039

Past Experience .261 .052 .276 5.041 .000

Atmosphere .306 .058 .320 5.274 .000

Assortment -.038 .066 -.040 -.576 .565

Price .135 .065 .147 2.080 .039

Service Interface -.054 .063 -.057 -.853 .395

Social Environment .156 .057 .175 2.750 .006

Retail Brand .013 .084 .013 .161 ..872

Alternate Channel Experience .091 .046 .112 1.991 .048


Table-2: Summaries of Regression Models for Determinants and Customer Experience for Supermarkets

Model 1 R R Square Adjusted R Std. Error of the Estimate

1 .793 a .629 .617 .58852






Table-3: Model Significance for Supermarkets

Model Sum of Squares d.f. Mean Square F Sig.

Regression 144.005 8 18.001 51.972 .000

Residual 84.856 245 .346

Total 228.861 253


Interpretation: The result of the multiple regression using enter method as in Table 2 and Table 3, shows that overall model for

supermarket yielded a significant statistic (F=51.972, p<0.000) and adjusted R Square is 0.617, explained by social environment,

Service interface, retail atmosphere, assortment, price, Experience in alternate channels, retail brand and previous customer

experience.

Specialty Stores

Specialty stores focuses on special market segments and carpet area generally ranges from 2000-5000 sqft.

Table-4: Multiple Regression Analysis


Note: Dependent Variable: Customer Experience

Table-5: Summaries of Regression Models for Determinants and Customer Experience for Specialty Stores

Model R R Square Adjusted R Std. Error of the Estimate

1 .916 a .839 .826 .45643


Table-6: Model Significance for Specialty Stores

Model Sum of Squares d.f. Mean Square F

Regression 109.526 8 13.691 65.717

Residual 21.041 101 .208

Total 130.568 109


Interpretation: result of the multiple regression using enter method as in Table 5 and Table 6, shows that overall model for

specialty stores yielded a significant statistic (F=65.717, p<0.000) and adjusted R Square is 0.826, explained by social

environment, Service interface, retail atmosphere, assortment, price, Experience in alternate channels, retail brand and previous

customer experience.

Branded Stores

Branded stores are said to be exclusive showrooms either owned or franchised out by the manufacturer.


Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

(Constant) .894 .346 2.588 .011

Past Experience .376 .065 .296 5.743 .000

Atmosphere .514 .057 .509 9.046 .000

Assortment -.045 .080 -.046 -.564 .574

Price .183 .084 .157 2.176 .032

Service Interface .158 .069 .163 2.304 .023

Social Environment .539 .073 .516 7.396 .000

Retail Brand -.126 .101 -.106 -1.248 .215

Alternate Channel Experience .126 .043 .158 2.893 .005





Table-7: Predictor Effects and β Estimates for Determinants on

Customer Experience for Branded Stores


Coefficients

Standardized

Coefficients

t

B Std. Error Beta

(Constant) 1.140 .284 4.013

Past Experience .254 .053 ..346 4.782

Atmosphere .260 .062 .308 4.192

Assortment -.045 .097 -.054 -.462

Price .221 .068 .270 3.261

Service Interface .325 .090 .432 3.600

Social Environment .507 .076 .640 6.643

Retail Brand -.087 .104 -.102 -.838

Alternate Channel Experience . -.039 . .048 -.060 -.811


Table-8: Summary of Regression Models for Determinants and Customer Experience for Branded Stores

Model R R Square Adjusted R Std. Error of the Estimate

1 .838 a .703 .679 .46866


Table-9: Model Significance for Branded Stores

Model Sum of Squares d.f. Mean Square F

Regression 51.466 8 6.433 29.290

Residual 21.744 99 .220

Total 73.210 107


The result of the multiple regression using enter method as in table 8 and table 9, shows that overall model for branded stores

yielded a significant statistic (F=29.290, p<0.000) and adjusted R Square is 0.679, explained by social environment, Service

interface, retail atmosphere, assortment, price, Experience in alternate channels, retail brand and previous customer experience.

FINDINGS

The regression results for the various determinants on customer experience showed support for many hypotheses in the various

retail store formats. The effects of the various determinants namely social environment, service interface, retail atmosphere,

assortment, price, Experience in alternate channels, retail brand, previous customer experience were examined using linear

regression.

Supermarket: The regression model and its related estimates indicate that in case of supermarket, social environment,

atmosphere, price, alternate channel experience and previous experience play a major role in creating a superior customer

experience than Service interface, Assortment, Retail brand. Therefore, for the supermarket, hypotheses H1, H3, H5, H6, H8 are all

supported.

Speciality Stores: In the case of specialty stores the regression model and the corresponding β estimates indicate that social

environment, service interface, retail atmosphere, price, alternate channel experience and past experience have significant effect

on customer experience than stores Assortment and stores Retail brand. Thus, it can be concluded that in the case of specialty

stores, hypotheses: H1, H2, H3, H5, H6 and H8 are all supported.

Branded Stores: In the case of branded stores, the model has a good fit, as the p value is significant at 5% level of significance.

The adjusted R Square depicts that 68% variation in the dependent variable customer experience is accounted by social

environment, service interface, retail atmosphere, price and experience than Assortment, stores Experience in alternate channels

and Retail brand. Hence, it can be said that in the case of branded stores, hypotheses: H1, H2, H3, H5 and H8 are all supported.





CONCLUSION

Retailers need to consider new concepts and approaches, and most of all, new approaches within the organization to capitalize on

the new opportunities offered by experiential marketing.

Yelkur (2000) argues that creating memorable experiences is critical to retaining current customers and attracting new ones.

Improving overall experience, without the risk of raising unrealistic consumer expectations, holds enormous promise for both

goods and services retailers.

Organizations must strive to orchestrate or to stimulate positive experience to be successful (Haeckel et al 2003). The present

study has indicated the need to focus on the various antecedents to create positive experiences. In summary, customers’

experiences resulting in positive emotional reactions are increasingly being seen as real and sustainable differentiators between

competing retailers.

The insight provided by the study about the various contributors and the suggested measures to improve customer experience

enable the retailer to frame marketing strategies which in turn may create a deeper bond towards the retail outlet and will directly

impact the purchase behavior of the customer.

REFERENCES

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3. Dikshit, Anand. (2011). The Uneasy Compromise - Indian Retail. The Wall Street Journal.

4. Levy, Michael, & Weitz, Barton A. (2004). Retailing Management. BurrRidge, IL: McGraw-Hill/Irwin.

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service environments. Journal of Service Marketing, 3, 6–15.

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8. Sengupta, Anirban. (2008). Emergence of modern Indian retail: an historical perspective. International Journal of

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THE STUDY OF CONSUMER PURCHASING BEHAVIOR IN ORGANIZED

AND UNORGANIZED RETAIL DIVISION OF UTTAR PRADESH

WITH SPECIAL REFERENCE TO LUCKNOW DISTRICT

Mohammad Imtiaz37

ABSTRACT

India is one of the largest markets for retail players in the world. Many hypermarkets, departmental stores supermarkets, have

been inaugurated in past few years in diverse part of India. The shopping tradition is changed from conventional marketing

culture to shopping mall society. The business of retail in India has going through key change. We have seen the developing of

new format and the purpose of worldwide concepts and constructs even though with modification to outfit the Indian

atmosphere. It not only provides the Indian shopper a broad preference, but also represents a very huge service chance for

people with various ability sets.

KEYWORDS

Consumer Behavior, Organized and Unorganized Retail etc.

INTRODUCTION

Retailing is the final step of any economic activity. It surround the business activities involved in selling goods and services to

customers for their personal, family or household use. It includes every sale to final consumers varying from cars to apparel to

meals at restaurants to movie tickets.

The word ‘retail’ is derived from the French word ‘retailer’, which means ‘to cut a piece off’ or ‘to break bulk’. A retailer is a

person, agent, agency, company or organization, which is involved in reaching the goods, merchandise or services to the final

consumer. Retailing is one of the most important growing industries in India. Napoleon Bonaparte’s jibe about ‘a nation of

shopkeepers’ still has a sphere of truth. The retail sector in India is witnessing a remarkable growth and creating huge

employment. Retailing can be illustrious in a variety of ways from other businesses such as manufacturing. Retailing hold

following characteristics, which vary, from manufacturing in following ways:

There is a direct end-user communication in retailing.

It is only spot in the value chain to offer a platform for promotions.

Sales at the retail stage are usually in smaller unit sizes.

Location is a critical aspect in retail business.

In most retail businesses, services are as vital as core products.

There are huge numbers of retail units evaluate to other members of the value chain. This occurs first to meet the

necessities of geographical coverage and population density.

Activities of Retailers

Retailers are often referred to as ‘middlemen” or “intermediaries”, who occupy a middle position, receiving and passing on

products from producers and wholesalers to customers. Retailers thus carry out various business actions and perform functions

such as categorization, holding stock etc. that add value to the offerings they make to the target segments. Therefore, the key

objective of any successful channel is to make sure availability of the right product, in the right quantity, at the right time via the

right channel.

Factors Responsible for the Growing Importance of Retail Sector

The retail sector is more and more being analyzed as an important economic activity that accounts for a significant part of the

economy, it employs a large proportion of workforce, and retailers today are among the largest and most of sophisticated

organizations. The various factors accountable for the growing importance of retail sector like:

Noticeable importance in economy.

Key employer.

37Research Scholar, Department of Management Studies, Mewar University, Rajasthan, India, [email protected]






Retailers as gatekeepers.

Diversifying activities of retailers.

Organization growing on international scale.

Size of operations allowing for supply chain control.

Blurring of retail areas to include to wider areas of wider activities.

Large and increasing contribution to GDP.

LITERATURE REVIEW

For the world of retailers, there is no doubt that India is the Promised Land (Fels, 2007). India’s retail sector is likely to grow to

US$635 billion by 2015 (Fels, 2007). The modern retail formats are screening healthy growth in the form of departmental stores,

supermarkets and hypermarkets (Gill, 2007).Certainly, over the last 50 years, retail site decisions have been exceeded by models

emphasizing the benefits of one stop shopping (Mandhachitara, 2007). Modern retail chains drive efficiencies in the process of

allocation and invest in infrastructure that would otherwise be left to governments to build (Fels, 2007). Foreign investment in

retailing promotes improved productivity and competence, improved sourcing, improved quality of employment (Mukherjee and

Patel, 2005). Foreign retailers source the vast majority of their products locally. German chain METR & says it sources 957 of its

products from India and Carrefour buys about 907 of its products locally for its hypermarkets in China (Fels, 2007). Cultural

change might be unavoidable. Hawkins et al. (2004) suggest that culture is not static but evolves and changes slowly over time.

Cultural change is an ongoing evolutionary process that involves changes in the priorities of values at both individual and societal

levels (Egri; Ratlson 2004). With increasing globalization the retail industry is facing more and more competition which is making

them struggle harder and harder to succeed through better performance ( Koh, Kim, and Kim, 2006).The retail industry in India is

largely unorganized and predominantly consists of small, independent, owner-managed shops that have dominated Indian retailing

over the decades and are present in every village and local community or street corner stores, addressing the needs of the

population in the area and being the point of contact with the consumer. There are about 12 million retail outlets in the country;

only about 4 per cent of them are larger than 500 sq. ft. in size (Gill 2007). Culture as a key factor to influence consumers’

behavior has been intensively studied Cross-culturally (e.g. Levy 1959; Belk 1988; Belk et. al.1988; Gilly 1988; Belk et. al.1989;

—Jacobs et al. 1991). The organized retailing scenario is stabilized for some time now as players like Big Bazaar, Barista, Pizza

Hut, Shoppers’ Stop, McDonald’s, Subway etc. have become successful in establishing a national footprint.(Gill, 2007). &

ordinary people are buying what the rich can afford, a surprising number of consumers have accepted private label brands in a

country where small, individual stores selling no-name goods have been the rule for decades (Gill, 2007). Retail growth will

continue in India, but an influx of foreign players, limited and expensive desirable real estate and foreign investment restrictions

have pushed the country’s retail market closer to maturity (Global Retail development index 2010). China, India, Brazil and

Russia remain the highest priority markets for retail expansion according to these executives, with nearly 80 percent of

respondents citing one of these markets as part of their firms’ plans for short-term international growth. (Global Retail

development index 2010). There are many approaches to understanding and defining retailing. It can be defined as any business

that directs its marketing efforts towards satisfying the final consumer based upon, the organization of selling goods and services

as a means of distribution”, (Gill, 2007). However, in supply-led economies such as the former centrally planned economics

(CPES) of eastern and central Europe, retailing has traditionally been viewed as an unnecessary and unproductive link in the

channel of distribution (Myers and Alexander, 1997), —Jack (2001). Experience of retailing in US shows that existing theories of

retail development based on changing consumer needs are inadequate to explain new developments” (Gill, 2007). Knowing who

the customers are and what they want become critically important for designing, advertising and promoting products, and

developing the right pricing strategy to make customers feel that they are getting value for the price paid (Hauser, 2005).

However, an emerging body of new literature assumes that preferences of consumers are constructed during the purchase process,

based on the task and the context (Hoeffler; Ariely, 1999). The experience of China, Brazil and Thailand show that opening of

retail sector to FDI has not only generated immense employment opportunities but also has given a big boost to their economy as

a whole. Indian policy makers are also of the view that giving the retail sector a thrust will not only result in boosting the

economy, but also that the retail sector has the potential to be leveraged in order to rejuvenate specific targeted sector, including

the rural economy - such as manufacturing, food processing, packaging and logistic services( Gill, 2007). Choice is dependent

upon customer preferences, but other influences, such as availability and perceived price, also influence the products that

customers choose (Hauser, 2005). Selecting a shop for patronage is a two-step process for many consumers. First, the selection of

the shopping area is made second comes the selection of stores within the area (Foxall, Goldsmith, 1994). In the initial stage, 49%

FDI in multi-brand retail should be allowed, which could be raised to 100 per cent in three to five years depending on the sector’s

growth.

OBJECTIVES

The main objective is to study of consumer purchasing behavior in organized and unorganized retail sector of Uttar Pradesh with

special reference to Lucknow district.





Sub-Objectives

To understand the relationship between Organized and Unorganized retail sector with reference to the factors affecting

consumer-purchasing behavior.

To find out the most influencing factor that affects the consumers’ purchasing behavior.


The present study is a descriptive type of research study. The study aims to find out the factor of consumer purchasing behavior in

organized and unorganized retail sector of Uttar Pradesh with special reference to Lucknow district in order to conduct the study

100 respondents of Lucknow city have been surveyed and questionnaire method was used for data collection.

Sources of Data

The source for the study has been collected from both primary and secondary data. The primary data has been collected through a

well-drafted questionnaire. The secondary data has been collected through different sources like:

Books,

International and national journals,

Reports of World bank, Department of economic affairs, Planning commission,

Magazines,

Internet.

Research Approaches

Qualitative: The field of the study requires in-depth observation, instruments to get what customers do expect and get and how

giant organized retailers are affecting small retailers and in turn affects them, therefore qualitative approach is one of the essential

tool.

Quantitative: A research technique in which scientific concrete and projectable numerical data that can be statistically analyzed is

gathered, often from large samples also called hard data. The use of qualitative approach in the collection of data has been

attempted in order to give the study a concrete statistical shape. Here it will be pertinent to write that no quantitative technique for

the data analysis has been used. The analysis of the data in findings and interpretation part is purely descriptive in a holistic

manner-taking cognizance of different dimensions of the matter at hand.

Sampling Unit

Unorganized Retailers,

Organized Retailers,

Survey Methods

Personal Interviews,

Telephonic Interviews,

E-mailing,

Observations.

RETAIL LAYOUTS

Layouts of Selling

The different layout of selling or the store ‘package’ that the retailer present to the shopper is called as retail layout. A layout is

defined as a kind of retail mix, used by a set of retailers. Store Layout are layout based on the physical store where the vendor be

in touch with the customer. It is the mix of variables that retailers use to build up their business strategies and comprise the mix as

assortment, price, transactional convenience and experience. As a result, every retailer wants to assess the facilitator and obstacle

in the retail marketplace. This first involve in identifying the key drivers of growth, the shoppers’ outline and shopper opportunity.

It also means evaluating the nature of competition and challenges in the market place. Then the retailer decides the fundamentals

of the retail mix to satisfy the target markets’ needs more efficiently than its competitors. The alternative of retail mix elements

will allow it to decide the type of layout or arrangement of business. One of the key elements of a retailer’s success is the layout





that they use to present to their target customers. A retailer can decide a layout based on the kind of store design they want to

make, the region they would like to create, the variety of products and services they desire to offer and approach taken to pricing.

The most significant feature is that the layout should be ideal to their target demographics.

In the past, small independent players such as conventional and small grocery stores have dominated the Indian retail sector. It is

the modern times that organized multi-outlet retail idea has gained drive. As per the study carry out by the ICRIER on the subject

‘Impact of Organized Retail on Unorganized Retail Sector’; the retail business is projected to grow at 13% p.a. from US$ 322

billion in 2006-07 to US$ 590 billion in 2011-12. In modern retailing, layout is the key strategic option. Retailers can get edge

over competitors by innovating their layout. In India, organized retailers are trying out a large variety of layout. Local situation

and insight into the local buying behavior have to shape the layout choice. A good point to note in the retailing industry in the

present day is the level of experimentation occurring locally in terms of layouts. For example, ITC e-chaupal is an innovative

model, which brings together a two-way flow of goods in retail outlet. Farmers sell their produce and purchase goods to fulfill

their expenditure needs. Irrespective of the size, there is strong appearance of definite retail layouts in India. Organized retail as

well as unorganized retail are of enormous importance for the producers and the traders as well as to the consumers. Unorganized

retailing existed from the early stage of business development while organized retailing become popular after large-scale

production during late 1800’s.

Unorganized Retail Formats

India is a huge country, which lives in villages consist of 80% of population. Some of them get employment in the government

departments or in private or public sector. A great number of people’s employment depends upon agricultural activities/

unorganized sector. Majority of consumers make purchase daily for daily needs. These needs are satisfied by the neighbor’s kirana

/ general stores, roadside vendor, weekly hats / markets, and melas on special occasions. Customer gets easy credits for their small

purchases at unorganized retail shop. They pay back ‘as and when earned’ basis. The customers get the choice to pay in the

evening for the purchases in the morning or vice-versa, pay next day, pay weekly or monthly for the purchases. Sometimes, the

customer gets period credit for special needs like marriages, illness and death of family members.

Although there are many unorganized retail formats in India, yet generally unorganized retail formats can be categorized in two

parts:

Non-movable Retail Formats,

Movable Retail Formats.

Under Non-movable Retail Formats, popular formats are kirana/general stores like medical store, cloth and readymade garments

shop, cosmetics stores etc.

Weekly Hat / Market, Mela, Hawkers and Pheriwala, Roaming Salesman/Vendors are the movable retail formats.

Organized Retail Layout

Disposable income of Indian consumers have increased considerably during the last decade, so they keep on demanding better

products and services, and a better shopping environment. As the income level increases, the consumer’s option for modern retail

format also change. Young consumers are more tending to shop from modern retail formats as compare to older ones. Due to

important product attribute like improved quality, variety of brands and variety of merchandise and store attribute like parking

facility, qualified sales personnel and complete security etc.; consumers have a preference to modern retail formats. The main

provider for the growth of planned retailing are the withholding strategies, promotional strategies, growth and improvement

strategies, growth and development strategies, pricing strategies and competitive strategies of retailers. It plays a vital role in

enhancing the sales of retail formats. Several layout have been experimented by retailers. Some of them are:

Malls: Malls ranging from 60,000 sq. ft. to 7,00,000 sq. ft., are the largest form of organized retailing today. These provide an

ideal shopping experience with a merger of product, service and entertainment, all under a single roof.

Convenience Stores: These are comparatively small stores situated near residential areas and open for extended hours for all

seven days a week. These carry a partial line of high-turnover convenience products and fill significant consumer needs. People

are ready to pay for the convenience.

Department Stores: Department Stores are another type of rising formats and these carry several product lines- characteristically

clothing, home furnishings and household goods - with each line operating as a separate department managed by specialist buyers

or merchandisers.





Hypermarkets / Supermarkets: Hypermarkets and Supermarkets are the newest formats located in or near suburban high streets.

Hypermarkets hold a product range varying from Foods, Home-ware, Appliances, Furniture, Sports, Toys and Clothing; and

Supermarkets are large self-service outlets, catering to diverse shopper needs and primarily focus on Food, Grocery, and personal

sales.

Discount Stores: Consumers prefer to pay a low price can visit the Discount Stores or Factory Outlets, which offer discounts on

the MRP, as they sell in bulk and have higher economies of scale.

Specialty Stores: These stores particularly provide to consumers who are looking for various brands at one store. For example,

apparel stores, sporting goods stores, furniture stores and bookstores are some of the examples of specialty stores. (Kotler, 2006;

Sinha, 2007 and Jasola, 2007)

Category Killers: Large format stores that focus in a narrow line of merchandise e.g. Vivek, Vijay Sales, Mega Mart. They use

their buying power to negotiate low prices and exceptional terms and guaranteed supply when items are in short supply.

Seamless Malls: conglomerate of retailers without walls separating the individual stores. One massive shop, with hundreds of

popular brands sharing space with each other e.g. Pantaloon’s Central Mall.

Outlet Mall: Shopping centre with national brand-name retailers selling economical merchandise e.g. City Mall.

Anchor Clients: The most important basics in a large format mall. An anchor is among the first clients to go into a mall, and

occupy at least 25-30% floor space e.g. Big Bazaar in Sahara Mall Gurgaon.

Draw Tenant: A store that attracts a large number of possible customers to a shopping centre, often an anchor store.

Food Court: Separate area of a shopping centre contain fast-food outlets and a common, seating area.

Figure-1


CHALLENGES FACED BY ORGANIZED RETAIL SECTOR IN INDIA

Even though the organized retail market does offer a huge untouched prospective, it should also be recognized that it is not that

easy to function in retail market because of a number of problems. Retailers need to tackle the following challenges in order to

become flourishing on long term.





The organized retail sector in India is still at a developmental phase, characterized by a very small number of players

trying to generate a new standard. To become a flourishing industry, the Indian retail sector has to create a center of

attention by leading Indian and foreign players to make sizeable investments.

Technology is one of the main challenges faced by organized retailers for proficient management.

Lack of skillful personnel in retail sector.

Retail reduction is also one of the main challenges. Retail contraction is the difference in the price of stock as per the

books and the real stock accessible in the shop. The causes of retail decrease are mainly employee theft, shoplifting,

administrative errors and vendor fraud. Efficient online monitoring system need to be executed.

Understanding customers in terms of customer behavior and loyalty is a tricky job. Retailers need to put into practice

effectual customer relation management and loyalty agenda.

Distribution is an essential part of any retail organization. Delivering the right goods to the right place at the right time is

key job of allocation. Retail majors are under serious pressure to get better their supply chain systems and distribution

channels and arrive at the levels of quality and service preferred by customers. The lack of appropriate infrastructure

and distribution channels in the country results in unproductive processes.

Organized retail outlets use incredibly huge amount of electricity for a variety of purpose from lighting, air

conditioning, escalators, cold storing, billing systems, lifts etc. Because of inadequate and incompetent power supply, a

huge amount of private investment goes into ensuring power backups. This makes it very tricky for organized retail to

grow.

The retailers in India are paying very high price for real estate. This increases the maintenance price and diminish profit

margins.

Competition from unorganized sector is an additional challenge facing the organized retail industry in India.

As more and more organized retail outlets are spotting the Indian geography, competition is no more controlled between

organized and unorganized retailing. It is now obvious between organized retailers as well. Well-organized and efficient

loyalty programs, home delivery of goods, customer retention strategies, offers, discounts etc. are the order of the day

DATA ANALYSIS

Relationship between Organized and Unorganized Retail Sector with reference to the Factors Affecting Consumer-Purchasing

Behavior.

Table-1: Calculation of Coefficient Correlation between Organized and Unorganized Retail Division

Factors X

Dx =

(X-11.12) Dx2 Y

Dy =

(Y-11.12) Dy2 DxDy

Quality 4 -7.12 50.6944 4 -7.12 50.6944 50.6944

Price 6 -5.12 26.2144 4 -7.12 50.6944 36.4544

Reference Group &

Family Influence 6 -5.12 26.2144 7 -4.12 16.9744 21.0944

Income 7 -4.12 16.9744 8 -3.12 9.7344 12.8544

Social Status 8 -3.12 9.7344 10 -1.12 1.2544 3.4944

Shopping Lifestyle 12 0.88 0.7744 12 0.88 0.7744 0.7744

Schemes and Offers 17 5.88 34.5744 13 1.88 3.5344 11.0544

Customer Services 18 6.88 47.3344 20 8.88 78.8544 61.0944

Convenience 22 10.88 118.374 22 10.88 118.3744 118.3744

TOTAL

100/9=

11.12

330.89

100/9 =

11.12

330.8896 315.8896


Here the value of correlation (r)

Correlation (r) = 315.8896 / 330.89 = 0.9547

The value of correlation should lie between -1 to +1, here the value of correlation is +.915, therefore it is found that high positive

relationship exists between the variables.





Factors Influencing Purchasing Behavior of Customers for Organized and Unorganized Retail Sector

Graph-1


CONCLUSION

The conclusion resultant from the study of the composed data is that there is a high encouraging connection between organized

and unorganized retail sector with suggestion to the feature touching consumer-purchasing behavior. It is establish that the

relationship is highly positive amongst the variables. The consequence regarding the most influencing factors is also analyzed.

The author acknowledged the factors on which study is done are- Quality of the product, Price, Reference group or family

influence, Income, Social Status, Shopping Lifestyle, Schemes and Offers, Customer Service and Convenience or Reach. The

author concluded that the above-mentioned factors have deep impact on customers purchasing behavior.

It is also concluded that customers prefer those purchase point where there are more schemes and offers. As after analyzing the

primary data it is found that schemes and offers are found the most influencing factor of consumer purchasing behavior in

organized retail, whereas when talking about the unorganized retail it is found that convenience or reach is measured as most

influencing factor of consumer purchasing behavior.

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PROFILE OF PRODUCTION OF MUGA SILK IN ASSAM:

A CASE STUDY OF GOALPARA DISTRICT OF ASSAM

Shahnaz Ali38 Dr. Horen Goowalla39

ABSTRACT

Indian silk industry is unique in several ways. India is the only country that commercially produces all the four types of silk

viz., Mulberry, tasar, eri and muga-consuming over 80% of the silk fabric production within the country. India is the second

largest producer of silk in the world with an annual silk production of around 16,500 M.Tons. With over one billion

population, India is a huge market by any standards where silk has occupied an enviable position since “silk is indispensable

in ceremonies and religious rituals, being necessary in wedding, festivals and funerals. Goalpara, as a poor district of Assam,

in which sericulture is a very profitable cottage industry for the poor family. The area of Goalpara district is composed of

eight (8) Development blocks and twentysix (26) Sericultural circles (Table 2).

The eight blocks are Kushdhowa, Balijana, Krishnai, Matia, Jaleswar, Kharmuza, Lakhipur and Rangjuli. Many families of

Goalpara district take the sericulture as the main source of income. The district of Goalpara is well known for its production

of quality muga seed cocoons and reeling cocoons. Sericulture in Goalpara district is the household occupation of the rural

areas and most of the people are belongs to tribal communities of the society. Apart of the population of various tribal

communities like Mech, Cachari, Rabha, Garo, Hajong, Koch etc., Schedule caste. An attempt has been made to highlight the

profile of production of Muga Silk in the study area and draw conclusion.

KEYWORDS

Distribution of Muga Villages, Muga Rearers, Production Activity, Price of Muga Silk etc.

INTRODUCTION

Human being has adored the natural silk fibre for various purposes from time immemorial, it is still reign supreme as “The Queen

of Fabrics” in the world textile industry of the world, and the demand is increasing year after year. Silk clothes have a look and

feeling of affluence that no other can equal. Due to its great value and use, there have been many attempts in various parts of the

world for production of silk in a large scale. One of the methods is rearing of silkworm on large scales by different techniques

with great care in natural and controlled condition in different parts of the world for large-scale production of fine silk. This is

known as sericulture. ‘Seri’ is a Latin word which means ‘silk’ and ‘culture’ is to ‘rear’. Silk is a natural filament created by the

silkworm. Therefore, sericulture means the raising or rearing of silkworms for the production of silk.

History of International Silk

Historically, Sericulture was introduced for the first time, into China by Hoshomin, the Queen of China. For a long time, the

Chinese Government considered sericulture, and as an industry, it was not known in other countries. Later, it was introduced into

Europe and Japan as well.

Chinese silk is still the cheapest and perhaps the contributing factor to the cost price is much favourable in China unlike in India.

However, the export potential of this sector is promising as silk production in Japan is declining and that of China, the largest silk

production in the World, it is stagnant or declining (World: Raw Silk- Market Report Analysis and forecast to 2020).

OBJECTIVES OF THE STUDY

To study the profile of production of Muga silk in Assam


The study has been based on only secondary data. Secondary data has been collected from the scholarly articles, books, referred

journals, published and unpublished thesis, newsletters, and various websites.

38Research Scholar, Department of Commerce, Dibrugarh University, Assam, India, [email protected] 39Associate Professor, Department of Commerce, Mariani College, Assam, India, [email protected]







Silk in India

Indian silk industry is unique in several ways. India is the only country that commercially produces all the four types of silk viz.,

Mulberry, tasar, eri and muga-consuming over 80% of the silk fabric production within the county. India is the second largest

producer of silk in the world with an annual silk production of around 16,500 M.Tons. With over one billion population, India is a

huge market by any standards where silk has occupied an enviable position since “silk is indispensable in ceremonies and

religious rituals, being necessary in wedding, festivals and funerals”.

Silk in Northeast

The golden yellow silk produced by the Muga silkworm, Antheraea assama is found mainly in North Eastern region of India. The

culture has also spread in different districts of neighboring states viz. East Garo Hills, West Khasi Hills and Re-Bhari districts of

Meghalaya, Mokokchung, Wokha and Kohima of Nagalan, Tameoglong of Manipur, Aizawl of Mizoram and Dibang valley,

Lohit, Changurh and Papumpare of Arunachal Pradesh.

Silk in Assam

Assam is also known for producing all four types of silk. Sericulture has been practiced in the state from time immemorial, and is

proud of traditionally producing Muga silk. Muga culture is endemic to erstwhile Assam and is the largest producer of the famous

golden Muga silk in the world. Muga culture has a glorious history in Assam. The silk of Assam was first made known to the

world during 1962 through famous traveller, Join Joseph who made a special mention to the effect that silkworm special in Assam

remained on trees and all round the year-end brilliant staffs were made out of the same.

Muga Silk in Goalpara District

Goalpara as a poor district of Assam, in which sericulture is a very profitable cottage industry for the poor family. The area of

Goalpara district is composed of eight (8) Development blocks and twenty six (26) Sericultural circles (Table 2). The eight blocks

are Kushdhowa, Balijana, Krishnai, Matia, Jaleswar, Kharmuza, Lakhipur and Rangjuli. Many families of Goalpara district take

the sericulture as the main source of income. The district of Goalpara is well known for its production of quality muga seed

cocoons and reeling cocoons. Sericulture in Goalpara district is the household occupation of the rural areas and most of the people

are belongs to tribal communities of the society. Apart of the population of various tribal communities like Mech, Cachari, Rabha,

Garo, Hajong, Koch etc., Schedule caste and General classes also taken up Sericulture as their primary source of income.

About 7612 families are engaged in sericulture directly in Goalpara district of which 5366 families practiced in eri culture, 2145

families practice muga culture and 821 families practice mulberry culture at present. About 251.57 hectare of land is covering

with different food plantation including plantation in Departmental farms and in private sector. At about 2145 farmers are

practicing muga culture in Goalpara district, they are involved in the production of reeling cocoons and seed cocoons, 65 Private

grainuers are functioning in the district to supply silkworm seed material to the Sericulturists, 26 private silk reeling devices are

functioning in the district. The private silk reeling entrepreneurs procure the cocoons produced by the Sericulturists through the

Government Cocoon Markets in the district as well as other state and produce raw silk. About 12 weavers are involved for

weaving silk fabric from 288. villages of 8 development blocks and cultivating 251.57 hectare acres of area covered with 2,40,500

of Som plants in Goalpara district (Table 2), (Anonymous, 2014-15).

Table-1: Block Wise Distribution of Muga Villages, Muga Rearers, Areas and Some Plants in Goalpara District

S. No. Blocks Number of Villages Circles Number of Rearers Area (Acre) Number of Plants

01 Rangjuli 97 9 694 283.62 72,638

02 Kushdhowa 65 7 469 318.45 91,299

03 Matia 26 3 182 65.50 8,414

04 Krishnai 16 1 112 307.16 95,886

05 Balijana 51 3 457 226.24 76,019

06 Kharmuza 12 1 84 11.70 2,000

07 Lakhipur 19 2 133 233.15 65,261

08 Jaleswar 2 nil 14 59.00 25,750

Total 288 26 2145 1504.82 4, 37, 267

Sources: Silk Directory - Muga, Assistant Director Sericulture, Goalpara, Assam. (2014)

Apart from above, in Government sector, there are about 38,792 of muga food plants in 18 Farms and Centres covering 487.86

acres of land in Goalpara district, Assam. India, where a total of 6.5 MT of muga raw silk produced during the year 2014-15

(Anonymous, 2014-15).





Table-2: Production Activity and Beneficiary engaged in Muga Culture in Goalpara District

S. No. Type of Activities Number of Persons

1 Reeling Cocoon Production (Commercial Rearers) 1821

2 Seed Cocoon Production (Seed Rearers) 221

3 Disease Free Laying Production (Graineurs) 12

4 Muga Cocoon Reeling (Reelers) 26

5 Muga Silk Fabric Production (Weavers) 65

Total 2145

Sources: Silk Directory - Muga, Assistant Director Sericulture, Goalpara, Assam (2014)

Table-3: Price of Muga Silk items in Goalpara District

S. No. Muga Products Divisions Units Price (Rs.)

01 Cocoon Seed Cocoon Per number 2-5

Reeling Cocoon Per number 1-2

Cut/Pierce Cocoon Per Kg 500-550

02 Silkworm Seed Dfls Per gram 7-10

03 Silk Raw Silk Per kg 1200-1500

Spun Silk Per kg 2000-3000

Sources: Annual Report, Directorate of Sericulture, Assam (Anonymous 2014)

Plate-1: Life Cycle of Muga Silkworm

Moth Pupa with cocoon


Plate-2: Muga Silkworms on Som Tree


Plate-3: Muga Farmer Transferring Muga Silkworm


Plate-4: Muga Moths Laying Eggs On Kharika






Plate-5: CSTRI Type Muga Reeling Machine


Plate-6: Muga Reeling By Women Reelers


Plate-7: Muga Silk Weaving By Male Weaver


Plate-8: Muga Silk Products


Plate-9: Customer Purchasing Muga Riha

in Exhibition Stalls


Plate-10: Goalpara District Grainage House






CONCLUSION

Assam is the land of mystic nature, colorful people of diverse ethnic groups, speaking different languages and following multi-

dimensional culture. All the ethnic groups maintain their identity by languages, style of living, dress, and festivals etc. The style of

living is reflecting through their code of dresses woven by them using traditional designs. Fascinated by the intricate designs and

uniqueness of the fabric Mahatma Gandhi once commented that the “Women of Assam weave fairy tales in cloth”.

REFERENCES

1. (2014-15). Anonymous: Silk Directory- Muga. Assam. Goalpara: Asst. Director Sericulture.

2. (2014). Anonymous: Final Report, Assam Agricultural Competitiveness Project (AACP), Marketing Study of Muga

& Eri Silk Industry in Assam.

3. (2013-14), (2014-15). Anonymous: Annual Report. Assam: Directorate of Sericulture.

4. Barua, B. K. (1969). A Cultural History of Assam (Early Period), 1(5), 103 – 104.

5. Bharali, N. (1967). Som: The Muga Food Plant. Indian Silk, 6(1), 5-6.

6. Bharali, N. (1969). History of muga silk industry in Assam. Indian Silk, 7(12), 13-14.

7. Chetia, Reena. (2013). Traditional Knowledge and Problems Involved in Muga Culture of Assam: A Case Study of

Golaghat District. International Journal for 8.Basic Sciences and Social Sciences (IJBSS), 2(2), 129-134. ISSN:

2319-2968.

8. Choudhury, P. C. (1959). The History of civilization of the people of Assam to the 12th CenturyA.D.

9. Chowdhury, S. N. (1982). Muga Silk Industry, pp. 1-178. Government of Assam: Directorate of Sericulture. India.

10. Dutta, P., Das, K., Das, R., Mech, D., & Chakravorty, R. (2009). Pest and disease management in muga Culture:

Traditional Practices. Indian Silk, 47(9), 16-18.

11. Gait, E. A. (1905). History of Assam ( Revised by B.K. Barua and H.V.S. Murthy)

12. Helfer, T. W. (1837). On the indigenous Silkworms of India. The Journal of the Asiatic Society of Bengal (Calcutta),

VI (I): 38–47, pl. V–VI. 104)

13. Mech, D., Ahmed M., & Kumar, R. (2014). Indigenous Technical Knowledge Associated in Muga culture. An

International Journal. ISSN No. (Print): 0975-1130 ISSN No. (Online): 2249-3239

14. Phukon, R., & Chowdhuri, S. N. (2006). Traditional knowledge and practices involves in muga culture of Assam:

Indian Journals of Traditional Knowledge, 5(4), 450-453.

15. Sarmah, M. C., Rahman, S. A. S., Barah, A. (2010). Traditional Practice and terminologies in muga and sericulture.

Indian Journals of Traditional Knowledge, 9(3), 448-452.

16. Retrieved from http://www.sericultureassam.org/aotd.html

17. Retrieved from http://clarion.ind.in/index.php/clarion/article/viewFile/173/182

18. Retrieved from http://rfbss.org/journal/index.php/IJBSS/article/download/32/24

19. Retrieved from http://agropedia.iitk.ac.in/content/sericulture-industry

20. Retrieved from http://krishiworld.com/sericulture-industry-and-its-potential-in-india-part-1/

21. Retrieved from https://en.wikipedia.org/wiki/Silk#Etymology

22. Retrieved from https://en.wikipedia.org/wiki/Silk

http://www.sericultureassam.org/aotd.html

http://clarion.ind.in/index.php/clarion/article/viewFile/173/182

http://rfbss.org/journal/index.php/IJBSS/article/download/32/24

http://agropedia.iitk.ac.in/content/sericulture-industry

http://krishiworld.com/sericulture-industry-and-its-potential-in-india-part-1/

https://en.wikipedia.org/wiki/Silk%23Etymology

https://en.wikipedia.org/wiki/Silk





23. Retrieved from http://india.gov.in/website-goalpara-district-assam

24. Retrieved from http://www.goalpara.gov.in/

25. Retrieved from http://www.sericultureassam.org/

26. Retrieved from https://www.naukrinama.com/directorate-of-sericulture-recruitment-2015-sericulture-demonstrator/

27. Retrieved from

http://mospi.nic.in/Mospi_New/upload/statistical_year_book_2012/htm/Ch-11%20Sericulture/Sericulture-...

28. Retrieved from http://www.rfbss.org/journal/index.php/IJBSS/article/view/32

29. Retrieved from http://www.ijsrp.org/research-journal-0116.php

30. Retrieved from http://www.tjprc.org/download.php?fname=2-41-1368701816-8.Indian%20Sericulture%20-%20full.pdf

31. Retrieved from http://indianmedicine.eldoc.ub.rug.nl/root/S4/401s/

32. Retrieved from http://iasir.net/IJEBEApapers/IJEBEA12-314.pdf

33. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.300.4443

*****


















Success Stories:





(sd/-)

(Editor-In-Chief)

http://india.gov.in/website-goalpara-district-assam

http://www.goalpara.gov.in/

http://www.sericultureassam.org/

https://www.naukrinama.com/directorate-of-sericulture-recruitment-2015-sericulture-demonstrator/

http://mospi.nic.in/Mospi_New/upload/statistical_year_book_2012/htm/Ch-11%20Sericulture/Sericulture-...

http://www.rfbss.org/journal/index.php/IJBSS/article/view/32

http://www.ijsrp.org/research-journal-0116.php

http://www.tjprc.org/download.php?fname=2-41-1368701816-8.Indian%20Sericulture%20-%20full.pdf

http://indianmedicine.eldoc.ub.rug.nl/root/S4/401s/

http://iasir.net/IJEBEApapers/IJEBEA12-314.pdf

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STATUS REPORT OFUNORGANIZED RETAILING:

A CASE STUDY OF CHENNAI METROPOLITAN AREA

Dr. M. E. Prabhakar40

ABSTRACT

Globalization has paved the way for many industries to accelerate its growth trajectory and retailing is said to be one such

sunrise industry, which has exhibited the highest potential for growth. The emergence of global markets coupled with IT

revolution has fueled its growth of retailing across the world. Unorganized retailing is one such sector (unorganized) which is

characterized by high level of fragmentation in India where 95 percent or more which falls under that particular category.

Unorganized retailing is one such industry with has a huge potential in different aspects including contribution in employment

as well as economic growth. The paper traces the status of unorganized retailing in Chennai Metropolitan area (CMA)

KEYWORDS

Unorganized Traditional Retailing; Modern Stores; Foreign Direct Investment; Business Challenges etc.

INTRODUCTION

Retailing is a kind of distribution activity in which the retailer purchases from the suppliers or manufacturers and sells it directly

to consumers with a defined profit. It is a tail activity in the business chain where end user and last intermediaries who does the

transaction. Indian Retail industry is segmented into organized (modern retail stores) and (traditional) unorganized retailing and it is

basically known as ‘nation of shop keepers’ in the world due to the presence of more than 13 million retail outlets. Beyond buying –

selling activity, these stores are performing various functions like social meeting place, points of exchanging of information and

serve as socially integrated units. Unorganized retailing was classified as unorganized sectoring India, which contributes more in

terms of employment and GDP next to agriculture. These sectors were not recognized as industry, which in turn hampers the

operational as well as other functional aspects too. Due to emergence of modern stores, retailing some has added more problems

to unorganized retailing. These unorganized retail stores are also known as in different terminology like neighbourhood retailing,

convenience retailing, mom & pop stores, kirana stores, traditional retailing etc. The paper traces the status report of unorganized

retailing in Chennai Metropolitan Area (CMA) on the emergence of modern stores.


Academic research into the unorganized retailing in our country is lacking, due to non-recognition of these businesses and there is

no any regulatory mechanism available to monitor and look after the business prospects of unorganized retailing. Unorganized

retailing is a universal phenomenon in which it lacks the theoretical definition and other characteristics to define the business.

These unorganized industries were not given importance in any countries, United Kingdom was the first country who has initiated

to study about it, and they formed a one-member committee headed by Bolton in 1971 to define the characteristics as well as

problems significantly surrounded by these unorganized retailers. The committee in turn gave three aspects / characteristics for

traditional retailing; first, economic aspect (a small firm has a relatively small share of its market), management aspect (a small

firm is managed by its owners in a personalized way, not through formalized management structures), and the aspect of

independence or free from outside control (A small firm does not form part of a larger enterprise and decision making done by

managers or owners). Hence, these retail activities have to be seen from social, economic, and operational aspects in order to

understand it better.

Small-scale retailing is been closely associated with human civilization, it has been a part of the society, and they are deeply

rooted in it. Shoppers particularly who shop locally see local shops performing social and community functions (Smith and Sparks

1997). The role of shopping facilities serve to underline the inherently social nature of the shopping process and the critical role

that small stores play in this regard as a fundamental ‘building block’ of customers’ retail activities (Holbrook and Jackson 1996)

and also developing familiarity and building relationships (Pioch and Byrom 2004) with local customers that allows them to offer

residents benefits (Byrom, Medway, and Warnaby 2003) and creating ‘emotional connections’ in a friendly environment (Baron et

al., 2001). Being small scale in nature, these traditional retailing is a family owned business in which, the entire family and their

livelihood depends upon these business. Lauder et al (1994) quoted that, family businesses “provide a critical infrastructure for

economic activity and wealth creation” (Poutziouris, et al 2004). Broadbridge and Calderwood, (2002) explained that traditional

retailers should focus on local residents to beat modern retailers. In opinion of Hermann Kent, this endured in the 1930s; these

shopkeepers are true individuals and community assets. They have ‘live stakes’ in the places where they carry on business. What

40Associate Professor, Department of Management, S.M.S., Nagaland University, Nagaland, India, [email protected]






money they make, they largely spend where they make it. They render municipal and social welfare services. Rather than just

performing a utilitarian function, these small local stores meet a variety of social, sustainability and ethical needs (Megicks 2007).

Their ability to meet the needs of a diverse range of customers (Kirby 1987) stems from the variety of ways in which small stores

perform a social function: for some, they are the only store available; for others, they are a source of emergency supply and for

most, they are a focal point and source of specialist supplies (Smith and Sparks 1997). Kaufman and Hernandez (1991)

commented that, smaller stores do considerably better at establishing or maintaining community and cultural relations than do

larger retailers. The other main characteristics include, covering local area, proximity to consumers, fixed class customers,

identifying the individual and family needs, home delivery, extended credit facility, opening long hours and over the counter

services. Hence, the social role played by these traditional retailing seems to be simple but it is very important aspect, which is

said to be unique when compared to modern stores.

Traditional retail businesses promote entrepreneurial and risk taking activity, which has a positive consequence in terms of local

employment and income generation (Basu 1998; O’Dwyer and Ryan 2002). Since by nature of small scale, these retailers have no

bargaining power like corporate backed modern retailing, they are always at the receiving end in the case of supply chain with the

manufacturer. As a result, it has been argued that supermarket operator’s benefit from such vertical supply linkages and their

buying power can lead to exploitation of the consumer in terms of price (Delgado and Waterson 2003).

These traditional retailers play a major role in “fill in grocery purchase, rather than stock in grocery purchase”. The store choice is

dependent on the timing of shopping trips, as consumers may go to a smaller local store for short ‘fill-in’ trips and go to a larger

store for regular shopping trips (Kahn and Schmittlein, 1989). This traditional format is generally used by consumers for fill-in

trips and snack trips (Kahn and McAlister 1997) and adds value to access convenience, due to its convenient locations in

comparison to supermarkets. Majority of shoppers actually use small and large stores flexibly and inter – changeably for both top

– up shopping and major one stop shopping needs. Small traditional retailers have their own unique capabilities and distinctive

competencies (McGee 2000), and they create value in three main ways: by virtue of certain features generic to smaller outlets; by

the development of specialist store formats or by targeting their activities on specific consumer groups. In terms of their generic

features, small convenience stores meet the needs of consumers by adapting to the local population (Birtwistle and Tsim 2005),

providing a better service and product range tailored to shoppers needs, and offering incremental services that fulfill

neighbourhood needs better than supermarkets. Finally, the preference for the small store ends up by fill in grocery needs. Small

retailers are in a position to develop knowledge of particular groups, some of which have a stronger affinity with them than other

shoppers (Child, et al 2002) by specializing and developing a congruence between the image of the store and the customers they

are appealing to (O’Cass and Grace 2008). and also providing and developing home delivery (Meneely, et al 2008); stocking

products that are perceived as more ‘authentic’ fresh foods (e.g., vegetables) and spending more time with the customer (Groves

2001) and advising them on the quality and meaning of the product (Hilton 1998). In the current climate, the independent

retailer’s ability to provide positive, interpersonal components of the retail experience could be viewed as a real strength and

exploited to the full (Baron et. al., 1999). There are so many evidences that smaller retailers are finding success by providing

customer service that is unparalleled at the larger retailers utilizing these types of concepts from mom and- pop stores (Tosh

1998).

Lack of management expertise, under-capitalization, disadvantages of lack of economies of scale, lack of resources to gather

market intelligence, and inability to adapt new technologies (Lauder, et al 1994) make big barricades for the small store retailer to

grow. Despite the changing nature of the market and changing nature of consumer behaviour and a diversity of external business

and economic factors, there is still a role for small, independent shops and convenience stores at both social and economic levels

(Baron, Harris, Leaver and Oldfield, 2001)The changes in the business environment have placed increasing pressure on traditional

retailing businesses, with smaller firms experiencing difficulties during the first three years of existence following start-up

(O’Dwyer and Ryan, 2000). Therefore, the target audience for these traditional retailers is all about the nearby catchment area

population.

Government policy in foreign direct investment in multi brand retailing has brought unorganized retailing industry into the

business limelight. There is absolutely no level playing field for both modern retailing and unorganized retailing even though the

business environment seems to be same. The external factors are playing a predominant role and these factors make the small-

scale retailing to have a tough game in the business environment. The independent small shop has been the numerically dominant

retail form in many countries and this industries potential in contributing in employment, GDP it has been largely unknown. In

India, this small-scale retailing plays a vital role towards the development and is consistent with growth of economy.


Research Objectives

The business status report describes the particular situation of a business environment with a defined time. The present research

intended to find out the status of unorganized retailing (Food & Grocery) in Chennai metropolitan area (CMA). It follows 3P

approach, which consists of:





Progress (Past): What has been achieved as of now from the past?

Problems (Present): What are the challenges the industry is facing currently?

Plans (Future): How the industry could progress in days to come?

Research Questions

Did the unorganized retailer’s experienced reduction of customers?

What is the status of business turnover?

What is the overall opinion of the future prospects of their business?

Research Participants & Sample Framework

The present research concentrates only on the context of unorganized traditional retailers and the research participants are the

owners or who are running the unorganized retail business for at least 5 years are more. The status report is a part of larger survey,

which was administered to find out the different aspects of unorganized retailers in comparison with modern store retailers in the

study area (CMA). These stores were categorized into two segments namely treatment group and control group based upon the

location from the modern stores. Treatment groups are the stores, which are situated within 6km of the modern stores and control

group, which are located far away from the modern stores. This classification based on distance seems to be mandatory since it

directly affects the business prospects of unorganized retailers. The Chennai metropolitan area was equally represented by

dividing the city into 13 zones. The questions were open ended and the responses were taken down verbatim care was taken not to

intimidate and favour the answers. All the possible answers were taken into account and categorized for the analysis. On the part

of status report, the opinions were elicited in every 10th respondents out of 500 and 5th respondent out of 121 were chosen

randomly from the treatment group and control group retailers under study respectively so as to get the unbiased answers. In total

74 retailers were sampled to find out the opinion of their business prospects.

Table-1: Primary Sample Survey Zones


ANALYSIS& INTERPRETATION

The data gathered through questionnaires survey from traditional store owners were analyzed through means, averages,

percentages, chi square test and other descriptive statistics. Since it is a status report, the data gathered and analyzed was restricted

only to above said questions. For this purpose, SPSS 18.0 was used.

The table-2 and figure-1 shows a clear variation in the opinion of both the groups. Although chi square did not show significant

difference for various opinions between the two groups, one can witness in the graph that treatment groups thinks that there was a

reduction in the number of customers over the years. Present situation might not have been significant to say that there was any

impact on the traditional shops in terms of customer turn over according to the found results. These results are according to the

perceived notions by the shop owners. The actual situation may be different. It may also be possible that the present trend may not

be significant and in future, this may have a significant change over the years.

S.

No.

CMA

Zones

(Treatment Group)

Traditional Retailers

Interviewed (No.)

Opinion

Elicited

(Control Group)

Traditional Retailers

Interviewed (No.)

Opinion

Elicited

1. Zone 1 48 5 3 1

2. Zone 2 36 4 28 5

3. Zone 3 45 4 28 5

4. Zone 4 54 6 2 -

5. Zone 5 57 6 4 1

6. Zone 6 34 3 35 8

7. Zone 7 34 3 2 -

8. Zone 8 47 5 4 1

9. Zone 9 44 4 1 -

10. Zone 10 57 6 5 1

11. Zone 11 28 3 3 1

12. Zone 12 4 - 2 -

13. Zone 13 12 1 4 1

Total 500 50 121 24

http://en.wikipedia.org/wiki/Tondiarpet

















Chi Square Analysis for the Opinions of Retailers to Question-1

Table-2 Figure-1

Sources: Opinion recorded from Retailers;

Note: Chi square = .282 (Not Significant)

Groups

Opinion

Total

Chi Square

Value

p

Value

Yes No No

Opinion

.282

NS

Treatment

Group

18 14 18 50

36.0% 28.0% 36.0% 100.0%

Control

Group

5 6 13 24

20.8% 25.0% 54.2% 100.0%

Total 23 20 31 74

31.1% 27.0% 41.9% 100.0%

Sources: Opinion recorded from Retailers

The table-3 and figure-2 shows a clear picture about opinion on business turnover decrease due to the emergence of modern

stores. Although chi square did not show significant difference for various opinions between the two groups, one can see in the

graph that no opinion and no answers were more from the respondents who have indicated that there was a change. Present

situation might not have been significant to say that there was any impact due to emergence of modern stores on the traditional

shops in terms of business turn over according to the found results.


Table-3 Figure-2

Sources: Opinion recorded from Retailers;

Note: Chi square = .946 (Not Significant)

Groups

Opinion

Total

Chi Square

Value

p

Value

Yes No No

Opinion

.946

NS

Treatment

Group

3 29 18 50

6.0% 58.0% 36.0% 100.0%

Control

Group

1 14 9 24

4.2% 58.3% 37.5% 100.0%

Total 4 43 27 74

5.4% 58.1% 36.5% 100.0%



Table-4

Groups Business Prospect

Total Chi –Square

Value

‘p’

value Grow Not Grow Not Sure

Treatment

Group

26 15 9 50

.061

NS

52.0% 30.0% 18.0% 100.0%

Control

Group

19 2 3 24

79.2% 8.3% 12.5% 100.0%

Total 45 17 12 74

60.8% 23.0% 16.2% 100.0%


Note: Chi Square value = .061 Not Significant





Figure-3


Table-4 and Figure-3 show a clear opinion of both the groups. The chi square test did not show significance difference for various

opinions given by the respondents of treatment and control group. From the above figure and table, it is known that majority of the

respondents have indicated that the business will grow in future unmindful of the growth of modern stores. Hence, in the present

situation wherein the growth of modern stores whether in the area of treatment group or control group may not create any affect in

future. This may be due to the reason that they have a class of customers in their own business environment who have no other go

except to make convenient and comfortable purchases from these traditional stores. Hence, it appears that the traditional shops

shall even co-exist along with the modern stores.

MAJOR FINDINGS

The opinions given by the unorganized retailers were not shown much impact on traditional unorganized retailers due to the

emergence of modern retail stores. However, at the same time, the neutral as well as negative responses were relatively

considerable level due to the impact of modern retail stores. Though the unorganized retailers may suffer in terms of reduced

business turnover and profit, they may not go out of business immediately due to several other factors.

LIMITATIONS OF THE RESEARCH

There are several limitations to this study both conceptual and methodological. Due to the emerging nature of this retail industry,

limited secondary source and authenticated data were not made available. This current study was restricted only to retail aspect of

the food and grocery segment since it is most unorganized than any other segment. In addition, data collection took lot of

relationship building, recommendations of known Neighbours and also briefing about the research and motivating them which

took lot of time, money and energy. Despite those above said limitations, the study provides answers to the basic problems in

which traditional retailers are entangled due to the emergence of modern store retailing.

CONCLUSIONS

To conclude, the traditional unorganized retailers are running their business with reduced margin of profit and as of now, modern

stores did not make any huge impact. In addition, the government policy towards FDI in multi brand retailing has yet to take up

proper shape. Once FDI in multi brand retailing is freely allowed, which may create a huge unrest among retailers and it has been

already erupted in some other places. The Indian retail market environment is capable enough to accommodate both the aspects of

retailing activity and it may leads to level playing field if government considers and tackles the FDI issue very carefully.

SCOPE FOR FUTURE RESEARCH

The present study aimed at traditional food and grocery stores to find out the impact on them due to the growth of modern stores.

The study also proposed to find out the impact difference between traditional stores (treatment group) which are nearer to modern

stores and traditional stores (control group) which are far away from modern stores so as to relate these differential impact to the

preference factors of modern stores found attracting by traditional store customers who switched over to modern stores. In

addition, the food and grocery supply chain linkage with these stores have not been taken up in the present study and this offers

future scope for research.

treatment gp, Business

prospect Grow, 26


prospect Will not grow,

15


prospect unsure, 9

control gp, Business

prospect Grow, 19


prospect Will not grow,

2


prospect unsure, 3

treatment gp

control gp





The researcher was purposive in studying traditional retail food and grocery stores and hence the other segments are to be studied

by the future research workers to know the glimpse of unorganized retailing industry.

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congruence. Psychology and Marketing, 25(6), 521–538.

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Of European Industrial Training, 24(6), 345 -354.

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“MICROFINANCE” AN EFFECTIVE TOOL FOR WOMEN EMPOWERMENT:

A CASE STUDY OF UTTAR PRADESH

Rachna Gupta41 Bharat Kumar Meher42

ABSTRACT

Even after the introduction of banking sector in India, there is still a lacking of banking and other financial services for lower

income group people as well as for women. Such gaps gave birth to the development of Microfinance Institutions. In a

developing country like India, Microfinance is treated as an effective way to provide financial services not only to lower

income group of people, but also to the entrepreneurs and small businesses. As India is regarded as a male dominated society,

many attempts have been made to give an equal status to the women also. Many programmes have been initiated and steps

have been taken in empowering the women of the country. Introduction of Microfinance institution is one of such major step

for women empowerment. This paper is an attempt to analyze the role of Microfinance Institutions of Uttar Pradesh in women

empowerment. A critical analysis has also been done on the various schemes or financial services rendered by microfinance

institutions for the purpose of not only to eradicated the social evil like poverty but also to uplift the status of women in our

country. For this purpose, 3 Microfinance Institutions of Uttar Pradesh (S.E. Investment. Cashpor Microcredit and Sonata

Financial Services Ltd.), have been taken into consideration for the study. The sample size has been taken based on Net worth

of the companies. Companies whose Net worth was more than 2 million in the financial year 2014-15 have been selected for

the study. This study shows that selected Microfinance institutions have been playing a vital role in women empowerment

by rendering various financial and non-financial support to women like Loan, Employment Training, Education, Medical

Facilities etc. Besides that, Microfinance Institutions are also providing tectonic service as SHG (self- help group).

KEYWORDS

Microfinance Institutions, Women Empowerment, NABARD, Financial Services, Net Worth etc.

INTRODUCTION

Women play a vital role in the overall development of a country, as they constitute half the human resources of a nation. The

economic wealth of a country will be severely depleted if about half of the nation’s human resource is neglected or deprived of

relevant facilities required for development. Taking into consideration the need for involving women in various development

activities, “the Government of India has initiated several affirmative measures by way of programmes and schemes to bring them

into the mainstream of development. These affirmative actions have brought about perceptible changes in the socio-economic

conditions of women.” Introduction of Microfinance is one of such major step which not only puts emphasis on providing

financial services to the poor and underprivileged but also to encourage women empowerment and uplift the status of women in

India.

“The history of Microfinance can be traced back as long to the middle of the 1800s when the theorist Lysander Spooner was

writing over the benefits from small credits to entrepreneurs and farmers as a way getting the people out of poverty. But it was at

the end of World War II with the Marshall plan the concept had a big impact.”1, But as far as India is concerned, “the history of

microfinance dates back to establishment of Syndicate Bank in 1921 in private sector. During the early years, Syndicate Bank

concentrated on raising micro deposits in the form of daily/weekly basis and sanctioned micro loans to its clients for shorter

period. But microfinance came to limelight only when Dr Yunus gave it a mass movement in Grameen Bank experiment.”2

Microfinance can be regarded as a source of financial services not only for entrepreneurs, small businesses but also for the lower

income group or poor or for whom there is lack of availing the banking related facilities. Similarly, a Microfinance Institution

(MFI) is an organization that provides financial services to the poor as well as to the women. This is a very broad definition,

which includes a wide range of providers that vary in their legal structure, mission, and methodology. However, all share the

common characteristics of providing financial services to clients who are poorer and more vulnerable than traditional bank clients.

Almost all provide loans, to their members, and many other services like insurance, accepting deposits etc. Microfinance

Institutions also help in filling up the black holes of the society poverty, unemployment and regional disparities. The various

objectives of microfinance institutions are to eradicate poverty from the society, providing financial assistance for self-

employment and empowering the women of the nation. In India, about 70% women are poor because they do not have any

41Research Scholar, Department of Accountancy and Law, Faculty of Commerce, Dayalbagh Educational Institute (Deemed

University), Uttar Pradesh, India, [email protected] 42 Research Scholar (JRF), Department of Commerce, Dr. Harisingh Gour Central University, Madhya Pradesh, India,

[email protected]







financial support. Women are illiterate or less educated unemployed and lack of self-employment training. Therefore, to remove

such bottlenecks, Microfinance Institutions offer various financial services to provide an aid to such women, like small loans,

Scholarship, Emergency loans. Besides these financial services, such institutions like providing Employment training, free camps

Education etc. for women empowerment etc., also provide many other non-financial services. In the area of women

empowerment, many other institutions also working like NABARD (National bank for Agriculture and Rural Development) and

SHG (Self-Help Groups).


Adeline Mukayiranga (2013) A Case Study: Pro-Femmes / Twese Hamwe through DUTERIMBERE Micro-Finance Institution:

In a male dominated society, women have always been underestimated and discriminated in all spheres of life whether it be their

family and social life or their economic and political life. Even the unorganized sector has been heading into microfinance

movement. The paper is an attempt to study the role of microfinance intervention in promoting women empowerment in Rwanda

through Pro-Femmes / Twese Hamwe and other institutions.

Tiyas Biswas (2012) Women Empowerment through Micro Finance: A Boon for Development: This paper seeks to examine the

impact of Micro finance with respect to poverty alleviation and socioeconomic empowerment of rural women. An effort is also

made to suggest the ways to increase women empowerment.

Dr. M. Aruna and Rema Jyothirmayi (2011) The Role of microfinance in Women Empowerment: A study of the SHG bank

linkage program in Hyderabad (Andhra Pradesh): The present study acknowledges that despite of bottlenecks, microfinance is

capable of graduating struggling poor from their shackles and helps to upscale them to a better living and playing significant

positive role in upgrading women empowerment.

Sara Noreen (2011) Role of Microfinance in Empowerment of Female population of Bahawalpur district: Empowerment of

women is one of very important issue in developing countries. It is suggested that education facilities and family protection must

be provided in a proper way. Microfinance institutions should strengthen and expand their support to resource poor women.

IMPORTANCE OF STUDY

India is a developing country where about 70% women are poor due to lack of financial and other non-financial support. A sincere

initiative has been taken by the Microfinance institutions to provide financial and non-financial services to poor clients as well as

to women. Such institutions also made significant efforts to empower the women of the nation by providing numerous services

like self-employment training, awareness programs, promotion of leadership qualities etc. However, on the other hand many

women are still unaware about the various schemes of Microfinance, which could provide benefits not only to the poor but also to

the women. This paper is an attempt to aware about the various schemes to encourage women empowerment and none of the

studies in Uttar Pradesh context, examines these issues being an important area, which needs to be investigated.

OBJECTIVES OF STUDY

To analyze the various schemes provided by the 3 selected Microfinance Institutions of Uttar Pradesh, for lower income

group people or poor;

To know the various programs and schemes offered by Microfinance Institutions to encourage Women Empowerment.


Nature of Study: The study is Empirical in nature.

Area: The area of study is limited to the state of Uttar Pradesh.

Population Size: There are 10 Microfinance Institutions in Uttar Pradesh.

Sample Size: Three Microfinance Institutions of Uttar Pradesh (S.E. Investment, Cashpor Microcredit and Sonata

Financial Services Ltd.) have been selected for study. The sample size has been taken based on Net worth of the

companies. Companies whose Net worth was more than 2 million in the financial year 2010-11 have been selected for

the study.

Sources of Data: For the purpose of study, the Secondary Data have been used. Either secondary sources comprise of

published Annual Reports in the form of soft or hard of respective companies, websites of selected Microfinance

Institutions (MFIs), various reputed Journals and Magazines, Periodicals and Newspapers etc.

SELECTED MICROFINANCE INSTITUTIONS

Three Microfinance Institutions have been selected:





S. E. Investment (Agra)

SE Investments Limited was promoted as a private limited Company under the Companies Act, 1956, on 5th March 1992. On 1st

March 1995, fresh certificate of incorporation, consequent upon conversion to Public Limited Company was granted by the office

of the Registrar of the Companies, Uttar Pradesh, and Kanpur. The Registered Office of the Company had been shifted from

Block no. 54, Sanjay Place, Agra to S547, IInd Floor, Main Road, Shakarpur, and Delhi with effect from 22nd May 2003.

S.E. Investments Ltd. focuses on Small Finance and works with low-income families to provide financial solutions. It is also in

the business of providing term loan and working capital support to traders and medium sized enterprises. The company is

presently operating in the districts of Agra, Mathura, Bareilly, Aligarh, Hathras, Delhi, Jaipur, Ahmedabad, Mumbai and Jodhpur.

Presently the Company is engaged in the business of advances against stock of goods equipment, immovable property and other

assets and providing Safe Deposit Locker services. The Company is also having 2.4 MW Wind Energy Generator at Bangalore in

Karnataka and 0.80 MW Wind Energy Generator at Jaisalmer in Rajasthan. The Company is a category `A' Deposit Accepting

Non Banking Finance Company registered with Reserve Bank of India.

Promotion of Women Entrepreneurs Revolution (POWER): The Company has promoted a Non-Government Organization in

the name of ''Promotion of Women Entrepreneurs Revolution'' (POWER) for extending training and assistance to women folk

especially in rural areas through imparting vocational and professional training programs. Details of training camps organized by

POWER are as follows:

Table-1: Training Camps Organized

Year Number of Training Camps Organized Number of Women Trained

2013 17 82

2012 32 168

Sources: Official website of S.E. Investment Limited

Cashpor Micro Credit (Varanasi)

CASHPOR Micro Credit is a poverty focused, not for profit Company that provides microfinance exclusively to Below Poverty

Line women in eastern U.P. and Bihar. Mission of Cashpor Microcredit is to identify BPL women in rural areas and to provide

financial and other vital credit plus services in an honest timely and efficient manner. The Cashpor Financial & Technical Services

Pvt. Ltd (CFTS) has started operations in Mirzapur District in September 1997, as an experimental FastTrack, commercial

approach to establishing a Grameen Bank type institution. In the first six months of establishment and field operation, only 100

women have chosen this as credit institution and by that time, CFTS has opened six branches in the area. The second six-month

period was more challenging because there was no addition in the clients and at the end of the year, the number was only 100. In

February 1998, CFTS called 10 selected clients for a formal meeting at Mirzapur, CFTS paid them all the transport charges and

arranged formal lunch with their families. In meeting, officials of CFTS discussed the objectives of the firm to the clients that

CFTS wants to provide micro-credit facility to them with continual, timely and hones access to service for as long as they needed.

After this meeting, CFTS started its journey to success, which has become remarkable.

Figure-1: Credit Plus Activities of Cashpor Microcredit






The objective of Credit Plus Activities is to provide services viz. Scholarship, Health Education (Freedom from Hunger) and

Community Health Facilitator Training Program to CASHPOR’s clients, along with providing them with the cost effective loans.

Scholarship: To provide financial support to the existing clients so that their children are in school.

Health Education: To create awareness regarding the overall health of our clients and their family.

We impart education on health in two ways:

Health Education program along with Micro credit submit campaign & freedom from hunger

Community Health Facilitation Program along with Healing Fields Foundation.

Health Education Program along with Micro Credit Submit Campaign & Freedom from Hunger

We Cover four Modules with Micro credit submit campaign & freedom from hunger:

Child Illness,

Women’s Health,

Family Planning,

Diarrhea.

Conducted first pilot training batch with 9000 Client with 25 Female staff members by covering three modules (Child illnesses,

family planning & women’s Health)

All of the 25 female staff members had provided training to their co-workers and they in turn have created awareness among

clients on Child Health. All of these trained staff members are also trained on Diarrhea, the next module, and they have already

started creating awareness among their clients. As the center has rotated so, they have started facilitating at their new centers.

In Chandauli District, all of the staff members have completed their facilitation of Child health manual. Some of staff members

have already been transfer from Chandauli to Varanasi, so they will facilitate child Health module at Varanasi District. Left of

center Managers of Chandauli district are not facilitating the Health education program.

All female center Manager have been trained on Women’s Health and completed the facilitation of Health Education at their

centers. Now we have start the process to merge the health education program with healing fields program.

Community Health Facilitator Training Program: Through this program, CASHPOR wishes to create awareness regarding

Health among clients and non-clients both and to facilitate their access the health services to develop a healthy community in and

around our operational area. It is intended opportunity to integrate the health education in to the community health facilitator

program.

Healing fields’ foundation has signed a contract with two hospitals (Vishwamitra hospital & Sidhashram Sewa Sadan) where

doctor are agreed to provide concession which are as follows:

50% discount on Consultancy fee,

30% on medical examinations, and

5% on medicines.

Community Health Leadership: CMC has signed an agreement with healing fields foundation unique project recently launched

by the company (selected from our women borrowers) on pilot basis in Buxar District of Bihar 21st September 2010 in association

with Healing Fields Foundation (HFF). Under this project, our company and HFF will select 80 women among our clients and

train them for six months to become a full-fledged Community Health Leaders (CHL). Each of such 80 CHL would be able to

provide health intermediary services to 300 Cashpor Clients. Households with average total population of 1500. Company expects

that through this program Company will be able to bring measurable changes among our clients in terms of Health seeking

behavior, improvements in health and dietary habits, awareness of healthcare programs and services of the government, possible

decrease of preventable and communicable illness like vector borne and water borne, over a period of 2 to 4 years. If this pilot is

successful, then it will be disseminated to other CASHPOR districts.

Integration of Health Education: This is a unique project recently started by the company on pilot basis. Under this project, all

center managers of eighteen selected branches in six districts (Buxar, Ballia, Chandauli, Ghazipur, Mirzapur, and Varanasi) are

engaged in providing fifteen minutes of health education for clients in each of their center meetings after conducting their normal

business in each such center on daily basis. Currently all these center managers are delivering lessons to our members of the topic





“facing illness that attack our children”. For this purpose, these center managers have been provided training by our training

department in association with ‘Freedom from Hunger’ and ‘Micro Credit Summit campaign’. We getting a positive response

from our clients as well as from our staffs. Our Center Managers and Supervisor are highly motivated in providing healthcare

trainings to the clients.

Financial Literacy Workshops for Clients: Every year we conduct a financial literacy program to educate our clients and

women on the existing baskets of products regarding its actual cost and pricing etc. they also make them aware about the new

developments taking place in the company. This year we initiated an insurance product for our clients, here our core focus was on

the awareness and need for the insurance.

Various Financial Assistance Schemes provided by Cashpor Micro Credit for Women

We are living in 21st century where we see the development in our surroundings but still the condition of women is very

miserable. For improving the condition of women, private and public both sectors are taking active participation such as UP

Government has launched helpline number 1090 for women safety. Cashpor Micro Credit is also taking participation for women

empowerment by providing Mahila Sashaktikaran Loan and Mahila Surksha loan.

Table-2: Loan Products of Cashpor Microcredit for Women Empowerment

Name Repayment

Frequency

Tenure

of Loan

Grace

Period

Interest

Rate Purpose

CASHPOR Urja

Loan (upto Rs. 5,000)

Weekly 52 Weeks 2 Weeks 19.29% Stove / Solar Lamp / any Solar

energy operated devices

CASHPOR Mahila

Sashaktikaran

Loan

(upto Rs. 1,000)

Weekly 52 Weeks 2 Weeks 21.17% For purchasing new Mobile

phone for opening saving

account and to smoothly

operate existing Savings

Account

Fortnightly 26 fortnights 1 Fortnight 21.45%

Monthly 12 months Instalment start

from last week

of first month

21.66%

CASHPOR Mahila

Surksha loan (upto

Rs. 3000)

Weekly 26 weeks 5 weeks 15.94%

Loan can utilized to combat the

emergencies situations such as

flood, fire, epidemic, serious

accidents, Earthquake and

confinement.

Sources: Official Website of Cashpor Micro Credit

The above table depicts the various types of financial assistance, which would add up something to empower the women. The

various types of loans provided by Cashpor Micro Credit are following:

Cashpor Urja Loan: This loan has been provided to obtain devices like Stove, Solar Lamp or any Solar Energy operated devices.

This loan may be extended to 52 weeks and the repayment of loan would be weekly with a period of grace of two weeks. The rate

of interest would be at the rate of 19.29%.

Cashpor Mahila Sashaktikaran Loan: Main purpose of Mahila Sashaktikaran Loan is to purchase new mobile phone by which

women can contact with helpline number in emergency time. Mahila Sashaktikaran Loan is also helpful for opening and

maintaining existing saving account. Cashpor Mahila Sashaktikaran loan amount is provided upto Rs.1000 for maximum 12

months.

Cashpor Mahila Surksha Loan: Cashpor Micro Credit also provides Cashpor Mahila Surksha loan. Loan amount is upto Rs.

3000 and loan tenure is 26 weeks. Cashpor gives 5 weeks as grace period for repaying the loan amount. Basic purpose of this loan

to compensate women while natural disaster and accidents such as flood, fire, serious accident, earthquake etc.

Sonata Finance (P) Limited

Sonata Finance (P) LTD. aims to make microfinance financially self-sustainable. They use systematic processes, technology and

training to help ensure we offer quality service to our borrowers. Sonata Finance distributes small loans that begin at Rs. 2,000 to

Rs. 50,000 to poor women so they can start and expand simple businesses and increase their incomes at the rate of 26% per

annum.





SONATA works exclusively with women because they are the most marginalized among the poor and because they tend to invest

the majority of their income into the household and for their children. Sonata finance has set itself a mission to "identify and

motivate poor women in a cost-effective way and deliver them micro finance services in an honest, timely and efficient

manner."

SONATA has adopted an individual as well as a group lending approach and few other best practices with some minor

adjustments to suit local conditions. SONATA lends money to individuals or groups of 10 to 20 women members and designates

them as the ultimate guarantor of each of its members. If one member does not repay the loan, no individual in the group is

eligible to receive another loan.

SONATA FINANCE provides different financial and Non- financial services for women empowerment:

Income Generating Loans: In the initial growth period, SONATA only offers one basic loan product, which is strictly

restricted to income generating activities. During the first cycle and on average, clients apply for a loan of a maximum

Rs. 8,000 (the minimum amount is Rs. 2,000). During each cycle thereafter, the client has the option of applying for up

to 120% of the previous loan amount. The basic loan is repaid in equal weekly installments at "center meetings" held in

the local communities. Prepayment of principal is possible but only if the client settles the entire balance of the principal

outstanding.

The Emergency Loans: The emergency loan is designed to meet events that could put the continuity or effectiveness of

the income generating activity at risk. To be able to access an emergency loan, the client must present a good rating in

terms of credit discipline. Like the basic loan, all the associates in the group must approve the emergency loan. The

emergency loan will be granted for a term of 25 weeks with weekly payments and the maximum loan amount is Rs.

2,000.

Individual Lending: SONATA Finance provides Individual Loan lending for individuals. Rest of the procedure is

same as in-group lending procedure.

Employment Training & Free Education: Other than, above stated activities SONATA FINANCE also provides

Employment training to women, Education, provides Medical facilities for themselves and their children etc.

CONCLUSION

In this today’s world, the status of women is equal that of men. It is quite clear that the status of women are also increasing day by

day, and for such upliftment of women, micro finance institutions has played a major role. This paper is based on the study of

Micro finance institutions in Uttar Pradesh in empowering the women, which throws light on the various schemes and financial

assistance provided by selected micro finance institutions in empowering the women of Uttar Pradesh.

The above observations and analysis provide enough facts that these 3 micro finance institutions has created a good example that

there is also a prime motive of empowering women of Uttar Pradesh behind the establishment of such type of micro finance

concerns but still there are many rural areas which also need such establishments for the empowerment and development of

women. It is also true that micro finance can only assist to the women, which would be limited to a certain extent. Hence a joint

effort is much needed by not only from such institutions or NGOs but also from the government and society as a whole, to

empower the women, on the result of which the women would be regarded as the assets of a family and society rather than a

liability.

REFERENCES

1. History of Microfinance. (n.d.). Retrieved from http://www.microfinanceinfo.com/history-of-microfinance

2. Mahanta, P., Panda, G., & Kumar, S. (2012). Status of Microfinance in India - A Review. International Journal of

Marketing, Financial Services & Management Research, 1(11), 142-155.

3. (2011). Annual Report of Cashpor Micro Credit 2010-11. Retrieved from

http://www.cashpor.in/AnnualReport/AR_2011.pdf

4. Aruna, M., & Jyothirmayi, R. (2011, May). The Role of Microfinance in Women Empowerment: A Study on the SHG

Bank Linkage Program in Hyderabad (Andhra Pradesh). Indian Journal of Commerce & Management Studies, II(4),

77-95. May 2011

http://www.microfinanceinfo.com/history-of-microfinance

http://www.cashpor.in/AnnualReport/AR_2011.pdf





5. Biswas, T. (2012). Women Empowerment through Micro Finance: A Boon for Development. Retrieved December 23,

2015, from http://www.isical.ac.in/~wemp/Papers/PaperTiyasBiswas.doc

6. Kayiranga, A. (2013). A case study of pro-femme/twese hamwe through Duterimbere microfinance institution.

Retrieved from

http://www.memoireonline.com/07/13/7239/m_Contribution-of-microfinance-in-women-empowerment-A-case-study-

of-pro-femmetwese-hamwe-through-Dut0.html

7. Mukayiranga, A. (2013). A Case Study: Pro-Femmes/Twese Hamwe through DUTERIMBERE Micro-Finance

Institution. Retrieved from

http://www.memoireonline.com/07/13/7239/m_Contribution-of-microfinance-in-women-empowerment-A-case-study-

of-pro-femmetwese-hamwe-through-Dut9.html

8. Noreen, S. (2011). Role of micro finance in empowerment of female population of Bahawalpur District. Retrieved on

December 23, 2015, from

http://www.microfinancegateway.org/sites/default/files/mfg-en-case-study-role-of-microfinance-in-empowerment-of-

female-population-of-bahawalpur-district-2011.pdf

9. S. E. Investment. (2012). Growth for life 20th Annual Report 2011-12. Agra.

10. S. E. Investment. (2011). Growth with conscience19th Annual Report 2010-11. Agra.

11. What we do. (n.d.). Retrieved on June 11, 2015, from http://www.sonataindia.com/what-we-do.html

12. Retrieved from http://www.cashpor.in/creditPlus.html

13. Retrieved from http://www.cashpor.in/healthcare.html

14. Retrieved from http://borgenproject.org/sonata-working-india-improve-financial-landscape/

15. Retrieved from

http://www.slideshare.net/dwivedipgdm/a-study-on-micro-credit-in-eastern-uttar-pradesh-with-referenc...

16. Retrieved from

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17. Retrieved from http://virlamf.com/products.html

18. Retrieved from http://sonataindia.com/index.html

19. Retrieved from http://euacademic.org/UploadArticle/501.pdf

20. Retrieved from http://www.seil.in/power-ngo/index.htm

21. Retrieved from http://www.roselife.in/index.html

22. Retrieved from http://kumkummicrofinance.com/

*****

Editor-In-Chief






(Mobile): +91-09419216270 – 71

[email protected],[email protected]

http://www.isical.ac.in/~wemp/Papers/PaperTiyasBiswas.doc

http://www.memoireonline.com/07/13/7239/m_Contribution-of-microfinance-in-women-empowerment-A-case-study-of-pro-femmetwese-hamwe-through-Dut0.html




http://www.microfinancegateway.org/sites/default/files/mfg-en-case-study-role-of-microfinance-in-empowerment-of-female-population-of-bahawalpur-district-2011.pdf

http://www.microfinancegateway.org/sites/default/files/mfg-en-case-study-role-of-microfinance-in-empowerment-of-female-population-of-bahawalpur-district-2011.pdf

http://www.sonataindia.com/what-we-do.html

http://www.cashpor.in/creditPlus.html

http://www.cashpor.in/healthcare.html

http://borgenproject.org/sonata-working-india-improve-financial-landscape/

http://www.slideshare.net/dwivedipgdm/a-study-on-micro-credit-in-eastern-uttar-pradesh-with-referenc...

http://www.academia.edu/6961531/A_Study_on_Micro_Credit_in_Eastern_Uttar-Pradesh_with_Reference_to_C...

http://virlamf.com/products.html

http://sonataindia.com/index.html

http://euacademic.org/UploadArticle/501.pdf

http://www.seil.in/power-ngo/index.htm

http://www.roselife.in/index.html

http://kumkummicrofinance.com/



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